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“Stage 1 of the policy introduced in July last year has failed to deliver an increase in the number of dual occupancies and duplexes being constructed. The policy has not worked because the supporting planning controls are missing,” added Mr Armitage.
Data from the NSW Government’s ‘Council League Table’ indicates that the average number of applications for new medium density developments is currently lower than it was in previous years.
In Greater Sydney, a total of 781 medium density development applications have been lodged this financial year to the end of January 2025. This is around 111 applications per month which is lower than it was in 2023/24 where the average was 116 applications per month. In 2022/23 the monthly average was 126 and in 2021/22 it was 173.
“Stage 2 of the Low and Mid-rise housing policy is welcomed. However, it is disappointing that this policy only applies in the 171 designated town centres and stations.
“This represents a significant scaling back from the initial announcement of the policy. It would have been far more beneficial to see these new controls applied across the state.
“There are over 340,000 lots in Sydney that could easily fit a duplex. If planning controls were adjusted, and if just a quarter of these were to be developed into dual occupancies, it would equate to 42,500 new dwellings that could be delivered within the next 12-24 months.
Mr Armitage stated that “the NSW Government needs to move away from allowing councils to set the development controls for dual occupancy developments.
“Builders in NSW stand ready to deliver more new housing right now. We just need the NSW Government to come to the party with the right policy settings to make this happen,” concluded Mr Armitage.
In mid-June 2025, the NSW Premier released the Housing and Productivity Contribution (HPC) Works-in-Kind Guideline for public consultation.
Today the State Government announced proposed changes to the regulatory powers to investigate registered builders who may be unable to meet the financial requirements of registration. The announcement also included a long-awaited review of the Home Building Contracts Act 1991 (HBCA) and associated laws.
Housing Industry Association welcomes today’s announcement by the Cook Labor Government to review key aspects of the home building contracts legislation and provide the building regulator with additional powers to work with builders in distress.
“Two cuts to the cash rate have seen the volume of detached house building approvals rise to be 3.2 per cent higher than the same month last year,” stated HIA Senior Economist Tom Devitt.