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{{propApi.successMessage}} {{region}} Change locationMajor policy reform needed to loosen the shackles on housing supply (NSW)
Major policy reform needed to loosen the shackles on housing supply (NSW)
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The HIA New Home Sales report is a monthly survey of the largest volume home builders in the five largest states and is a leading indicator of future detached home construction.
“While January 2025 produced an encouraging bounce in new home sales - it is a rise off a very low base,” added Mr Armitage.
“New home sales in New South Wales in the three months to January 2025 were up by 17.7 per cent compared to the previous three-month period, however compared with the corresponding three-month period in 2020 they were down 38 per cent.
“Detached house building approvals in New South Wales fell by 4.8 per cent in the 2024 calendar year. Low levels of new home sales and weak approvals do not bode well for housing starts in the states in 2025.
“On current trajectory, NSW will fall short of its National Housing Accord 5-year target by approximately 124,000 homes. That would be a tragedy to say the least.
“HIA members and the broader industry are ready to deliver the number of homes we need over 2024-2029, but they are constrained by insufficient Greenfield land supply, excessive new home building taxation, a costly and inefficient planning system and poor policy decisions.
“For example, Friday's announcement on stage 2 of the low- to mid-rise policy (dual occupancies around transport and town centres), was a scaling back of what was initially announced. Only 171 sites are earmarked for this kind of development and only up to an 800-metre radius. This is a missed opportunity to build more homes.
“If we don't pull out all stops on the rollout of widespread low- to mid-rise housing, new home building activity and housing affordability will struggle to escape the present quagmire,” concluded Mr Armitage.
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Population data highlights contradiction in government policy
“Australia’s population reached 27.4 million by the end of 2024, up by 445,900 people, or 1.7 per cent for the year,” stated HIA Senior Economist, Tom Devitt.
Tasmanian Election - Stadium or no stadium we still need housing
The Tasmanian election that no-one wanted to have is in full swing, and while the limited campaign period is unlikely to provide the usual platform to promote key policies and reforms, HIA is calling on both major parties to prioritise housing policies given the significant challenges across the state.
‘Getting Keys in Doors’ shouldn’t be this difficult
“Our dated and complex planning system is littered with speed bumps that could easily be removed”, said Brad Armitage, HIA NSW Executive Director.
New home building contract laws welcomed by HIA
“The Victorian government’s proposal to update home building contract laws to make them fit for use in the 21st century is welcomed by HIA,” stated HIA Executive Director, Keith Ryan.