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Boom in new homes for Sydney CBD

Monday, January 21, 2013
Mark BourisMyths bustedHome loans can seem a bit complicated and overwhelming. But it doesn't have to be. Mark Bouris clears up some common misconceptions.

New housing has boomed in Sydney's inner west and CBD while other areas remain sluggish, ensuring the city's home affordability remains among the worst in the world.

In the latest quarter of data, the McKell Institute found the inner west and CBD bettered their targets by around 40 per cent while the southwest and inner north fell short by 35 per cent.

"Since 2006 only eastern Sydney and Sydney's north have met or exceeded their Sydney 2036 targets, with every other region falling short," said McKell fellow Sean Macken.

"The southwest is a perennial underperformer - falling 65 per cent short of its target over this longer period.

"The inner north and northwest also languish a long way behind."

According to the most recent quarter of data, Sydney's dwelling completions are skyrocketing.

They are up 35 per cent on the previous quarter and 84 per cent on the quarter before that.

The Quarterly Homes Monitor shows the 5559 dwelling completions for the period July 1 through to September 30 last year met the former NSW government's Sydney 2036 Metropolitan Strategy target of 5825 new dwellings per quarter.

McKell Institute executive director Peter Bentley said the growing rate of dwelling completion was an encouraging sign.

"It's no secret that Sydney's housing affordability is among the very worst in the world," he said in a statement on Monday.

"One of the keys to improving Sydney's housing affordability is increasing our housing supply.

"That's why it's encouraging to see such a solid quarter of growth; we need plenty more of the same in coming quarters."

But Mr Bently said Melbourne continued to rate well ahead of Sydney, approving 195,254 new houses over the last five years compared to 100,980 for Sydney.

"It's no wonder the median house price in Melbourne is $523,804 versus $641,980 in Sydney and the median rental prices is $360 in Melbourne versus $520 in Sydney," he said.

22/08/2014 04:01Sydney, Australia. 22 August,2014
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