Low supply has created ‘a perfect storm’ in NSW
Commenting on the latest dwelling approvals data, the Real Estate Institute of NSW (REINSW) has stated that the housing crisis is worsening.
New data from the Australian Bureau of Statistics showed that dwelling approvals in NSW declined by 18.8 per cent over the month of June, the sharpest decline of any state or territory.
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With 1,597 freestanding houses approved, June saw the lowest number of new house approvals in 11 years.
REINSW CEO Tim McKibbin said that the latest figures were a sign that the state government’s housing policies “must be reconsidered”.
“The housing crisis is not easy to solve. It is a long-term prospect. But government can no longer turn a blind eye to the data,” said McKibbin.
“The housing crisis continues to deteriorate on the back of a perfect storm of inhibitive taxation, approval delays and rental reforms which discourage investment.
“The data is screaming at government and it’s time it listened,” he said.
In particular, McKibbin recommended the NSW government revise its current tax settings, which he believes discourage private investment.
“Government must stop driving investors out of the residential market through anti-landlord reforms. These reforms reduce rental supply and compound the dire situation for tenants.”
“The cost of new property is inflated by 40 per cent through taxes and charges imposed by various levels of government. It’s preventing new supply at a time when we desperately need more homes,” he said.
He also recommended that development-averse councils be held to account for holding up the pipeline of new housing.
“Delays in development approvals must be eradicated. Councils which fail to meet their housing quotas should have their planning powers revoked by the NSW government. We have run out of time for excuses,” said the REINSW representative.
While NSW dwelling approvals declined in June, other states fared strongly, with Queensland seeing an impressive 14.6 per cent rise in total monthly dwelling approvals.
In Tasmania, dwelling approvals increased by 8.8 per cent, while in Victoria – a state often criticised by industry actors for its tenancy reforms – approvals for freestanding houses increased by 2.6 per cent over the month.