Almost 185,000 new houses and apartments will be added to the Sydney property market by 2021
This Government forecast suggests that about 85 per cent more properties will be built in the next five years than were built in the previous five years creating the biggest housing construction boom in Sydney’s history.
The NSW Planning Minister, Rob Stokes, said the spread of the new dwellings meant the perennial Sydney problem of creating new properties only on the fringes of the city was finally being addressed.
The Department’s forecasts are based on development that is already under construction, developers either approved or being assessed, and land rezoned for residential purposes.
If the forecasts do come to fruition, the next five years will surpass a period between 1968 and 1973 – when apartment construction had been fuelled by the introduction of the strata title system – as the largest increase to Sydney’s housing supply in its history.
The estimate of 184,300 new dwellings in the next five years follows the construction of 100,650 homes in the five years between 2011 and 2016.
Between 2006 and 2011, about 69,650 new properties were added to Sydney.
Will this lead to an oversupply?
With Sydney’s population forecast to grow by 2.1 million people in the next two decades, the expected population increase, and the resulting demand for new dwellings, should not result in an over-supply according to Mr Stokes.
However, in my mind, unless developers construct the right mix of properties and cater for the needs of our changing lifestyles and demographics, rather than building cheap towers aimed at investors, particularly overseas investors, we’ll end up with an oversupply of the wrong type of property.
That’s why at Metropole we only buy investment grade properties for our clients – this is very different from “investment stock” built by most developers.
Here’s how you can find out the difference…
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