The Real Estate Institute of NSW (REINSW) has highlighted a worsening housing crisis in New South Wales, exacerbated by a significant decline in dwelling approvals. According to the latest data from the Australian Bureau of Statistics, dwelling approvals in NSW fell by 18.8% in June, marking the sharpest decline among all Australian states and territories. This has resulted in the lowest number of new house approvals in 11 years, with only 1,597 freestanding houses approved.
The Challenges Facing NSW’s Housing Market
REINSW CEO Tim McKibbin has called for a reevaluation of the state government’s housing policies, citing a “perfect storm” of issues including high taxation, approval delays, and rental reforms that deter investment. McKibbin emphasises that these factors contribute to a reduced rental supply, worsening the situation for tenants.Key points raised by McKibbin include:
- Taxation and Charges: The cost of new properties is inflated by 40% due to taxes and charges, hindering new supply.
- Approval Delays: Development-averse councils are slowing down the pipeline of new housing, and McKibbin suggests revoking their planning powers if they fail to meet quotas.
- Investment Deterrents: Anti-landlord reforms are driving investors away, further reducing rental availability.
Comparative Performance of Other States
While NSW struggles, other states have shown positive trends in dwelling approvals. Queensland experienced a 14.6% increase, Tasmania saw an 8.8% rise, and Victoria, despite criticisms over tenancy reforms, reported a 2.6% increase in freestanding house approvals.The REINSW urges the NSW government to address these challenges urgently, as the housing crisis continues to deteriorate, impacting both buyers and renters across the state.
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