Developers warn that New South Wales government policies aimed at boosting housing supply may inadvertently favour wealthy Sydney suburbs, such as the eastern suburbs and north shore, where profit margins on mid and high-rise units are higher. The transport-oriented development (TOD) zones are expected to drive a building boom in these affluent areas, but could slow development in less prosperous parts of Sydney as companies chase higher returns.
The Minns government has pledged to deliver 377,000 homes by 2029 under the national housing accord, requiring an average of 7,164 new homes each month. However, recent data from the Australian Bureau of Statistics shows approvals fell 6% in August to 3,637, following a 10% decline in July, raising concerns about future supply. The construction industry points to high material costs and thin profit margins as key obstacles, beyond just regulatory red tape.
Proposed planning changes include a Development Co-ordination Authority to streamline approvals from agencies like Sydney Water and the Rural Fire Service, and a Housing Delivery Authority fast-track for projects over $60 million. The Property Council of Australia says these measures will help clear backlogs and unblock complex projects. However, councils argue they are unfairly blamed for delays, noting that many approved projects remain unbuilt. For example, The Hills Shire Council has 17,000 approved homes not yet started, and the Box Hill subdivision rezoned in 2013 is still awaiting schools and a town centre.
The Danks Street District project in Waterloo illustrates the lengthy timeline: land sold in 2014, development application lodged in 2021, final approval in 2024, construction starting this year, and completion expected in 2028. Critics question whether the government's plans will help first home buyers, as the focus on high-value areas may not address affordability for those struggling to enter the market.
