NSW housing approvals could make investment more affordable
May 13, 2014 / Written by Rich Harvey
From the northern beaches to the eastern suburbs, it's no secret that Sydney has been a crown jewel in Australia's property investment market. However, with home values rising significantly, some Australians may be worried they can't afford to buy investment property in Sydney.
Recently released data from the Australian Bureau of Statistics (ABS) should put those fears to rest.
Figures show that on a year-over-year basis, New South Wales saw a huge 58 per cent increase in housing approvals as of March. In fact, approvals were at their highest level since 2003.
Minister for Planning Pru Goward stated that over the 12 months to March 2014, nearly 51,000 new homes were approved in the state. In March alone, 4,700 new homes were approved, up from 3,100 during March 2013.
Finally, on a month-over-month basis, NSW was the only mainland state to see an increase in housing approvals.
"These figures are an endorsement of the policies of the NSW government to support our housing industry, but most importantly they are great news for young families looking to buy their first home, great news for thousands of builders and tradies, and great news for our economy," Ms Goward said.
"We need more homes to keep up with the growing demand of people living in our great state. Thanks to our strong leadership, NSW is driving economic activity for the nation and these figures prove again that we are the driving force in home construction."
More stock coming on to the market could be a blessing for investors looking to enter the fray. Increased inventory often translates to greater housing affordability, which in turn could make it easier for investors to expand their portfolio in Sydney.
Interested parties would be wise to get in touch with a buyers agent in Sydney who could point them toward the best areas for investment growth.