‘Fast tracked’ policy push for medium-density housing tipped to impact NSW

Due to the deferral, Ms Porter has noticed blocks have been purchased in these areas in preparation of the changes before other property owners are aware and are expecting a value increase.

However, Ms Porter said this may not necessarily be the case.

“An automatic value increase because of a new planning policy isn’t a certainty and when there is a jump in supply of suitable sites this can have the opposite effect,” she said.

“We see some early adopters of the policy may be the winners, but those that wait will become one of many sites that will literally walk through the council planning process with ease and that reduces any expected uplift in values from the changing site use.”

In fact, property that fits best into the ‘missing middle’ may be likely to experience devaluation, she said.

“The policy will likely devalue development sites that match this criteria as many home owners will jump on this opportunity and push their property through as complying development and given that so many properties will now have more development opportunity that won’t be a unique feature,” Ms Porter said.

“When there is an over-supply of ‘easy to get DA’s’ this lowers the value of them in the market place and will result in devaluing of development sites across greater Sydney over the next few years as a result.”

She added downsizers would be the demographic most likely to benefit from an increase of medium density housing.

“This means the ageing population will have more housing stock to choose from when looking to downsize and their large style family homes will go to market,” she concluded.

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