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Propertybuyer

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Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 
 
Mon 26 Feb '24 with Rich Harvey Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24 with Rich Harvey Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

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Why haven't billions of dollars of homes been built?

February 27, 2015 / Written by Rich Harvey

 

By Rich Harvey, CEO, propertybuyer.com.au

We've been hearing about land supply issues for a little while now, with calls for governments to cut red tape and for fees to be reduced, so people can have an easier path to their Australian property investment. And while this is a crucial move, and something that could really unlock the Sydney market by letting more people buy, how serious is the supply situation in reality?

Knowing the numbers is key to being ahead in the property investment game. Whether you're using a buyers' agent to collate a portfolio of fantastic suitable properties for your situation or are planing your finances, knowing the details is a must. So let's take a look at the supply issues and see exactly where Sydney is at. 

Council shortfall

In a February 24 press release from the NSW Division of the Property Council of Australia, there was some dissection of where supply shortfalls for land and homes was occurring. According to the NSW Division Executive Director Glenn Byres, that falls to local governments. 

"Councils need to get on with the job of issuing approvals, delivering the housing required to keep pace with population growth and a better planning system is essential," he said. 

"And if we fail to keep pace with demand, we drive up prices and make housing less affordable for the next generation of homebuyers".

The report says in the last 10 years, the average number of annual housing approvals was 17,002. However, the target was 22,178 each year. This means that we fell short of home approval expectations by 56,320 dwellings over the last decade.

That's huge. Multiply it by RP Data's median Sydney end home value of $831,750 for homes in January this year and it works out to more than $46 billion of homes. But what does it mean for the future?

Lobbying and pushing

Mr Byres called for more sites for construction and development to be approved, and it's something that's been backed up by David Bare, the NSW Executive Director the Housing Industry Association. While Mr Bare's focus was on governmental policy changes to eliminate taxes and increase land supply, Mr Byres also noted the need for urban renewal along old transport lines and around town centres.

There's going to be no short-term solution to the supply problem, and the best you can do for now is get the right advice and make the most of what you can get out of the market. Of course, there are some easy ways to get ahead of the market there - like engaging the services of an expert buyers' agent

The Propertybuyer
Podcast

 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 
 
Mon 26 Feb '24
with Rich Harvey
Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24
with Rich Harvey
Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.