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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.
Housing Industry Association (HIA) has welcomed the Tasmanian Government’s commitment to set the First Home Owner Grant for new homes to $20,000, saying the measure will provide meaningful support to first home buyers while underpinning confidence in the state’s residential construction sector.
HIA successfully lobbed for an expansion of fast-track planning approvals in NSW. Now the NSW Government is proposing to introduce two new planning pathways designed to streamline the assessment process for for low rise residential development. These new pathways are part of the NSW Government's planning system reforms.
“New home sales in the month of April increased by 4.9 per cent despite rising interest rates and domestic and global uncertainty,” stated HIA Chief Economist Tim Reardon.
“The Housing Industry Association (HIA) welcomes the Commonwealth and Queensland Government’s announcement of more than $2 billion agreement to support the delivery of up to 51,000 new homes, including 20,000 exclusively for first home buyers across the state” said HIA Managing Director, Jocelyn Martin