NSW’s new housing supply is falling behind the rest of the country, according to a report by Urban Taskforce.
The company’s chief executive Aaron Gadiel said NSW had only experienced a 3.2 per cent growth in housing construction this year.
In contrast, Victoria managed to achieve 8.2 per cent, Queensland’s housing construction grew by 22.4 per cent and Western Australia achieved 13.8 per cent growth.
“NSW has the lowest seasonally adjusted growth in new home commencements for the September quarter,” Mr Gadiel said.
However, according to Westpac‘s economic report for the same quarter, a residential building cycle is “clearly underway”.
Westpac’s quarterly report said residential building gained 6 per cent in the September quarter after suffering a fall of 11 per cent over the last year.
But Mr Gadiel said the figures reflected public housing construction, not private housing construction, which was still slow.
“NSW’s construction figures were buttressed by the work on a massive number of public housing units and townhouses in the quarter – the highest number of construction commencements for high density public housing since 1992,” Mr Gadiel said.
“In the September quarter, work began on 637 high density public housing dwellings – more than four times the traditional level of public housing construction,” he said.
“However in the NSW private sector, construction of new apartments, terraces and townhouses is running at close to a third of traditional levels.”