With every key indicator confirming that Sydney’s development industry is continuing to slow down, the NSW Premier’s announcement on Planning reform in 2020 has had universal praise.

It’s worth putting the recent peak in residential development and the lag from approval to completion into perspective.

The record high approvals 3 years ago resulted in over 44,000 new homes being built in Sydney in 2018-19. The current forecasts, on the back of the record approvals indicate that on average 38,000 homes are going to be built over the next 5 years. These figures just keep up with demand, with Sydney needing on average 36,250 new homes each year.

The peak was not that far off what should be the new normal if Sydney is to keep up with demand and keep affordability in check. If the trend in approvals continue, supply will dry up, impacting affordability.

What can’t happen is for the next wave of development to pause and wait for reform to be announced and implemented. City Plan continue to successfully support our clients’ projects. If you need help understanding the “mystifying” planning system in NSW please give Chris O’Dell a call on 02 8270 3500

#planning #sydney #development #reform #affordability