Returning confidence to Sydney’s housing industry

29.8.13The returning strength of Sydney’s housing market has been on the minds of many real estate professionals and property investors for a long time, but now there are signs of recovering confidence.

The latest figures released by the New South Wales Department of Planning and Infrastructure have highlighted an improvement in Sydney’s housing construction industry, with an improvement of 5,500 dwellings being built over the previous year.

Chris Johnson, the chief executive of Urban Taskforce, said that there were only 15,591 dwellings built during 2011/12. However, there were 21,097 built in the year 2012/13, which is a large jump – especially for a market returning to confidence.

“On top of this, approvals have jumped from 24,000 a year to over 28,000 in 2012-13. The NSW Government has initiated a number of economic stimulus programs to help lift housing numbers and these are clearly paying off,” said Mr Johnson in an August 26 statement.

David Bare, the executive director of the Housing Industry Association for NSW, forecasts a strong recovery for 2013, indicating an expectation of around 39,000 dwelling commencements by the end of the year.

“It is encouraging to see a long overdue recovery underway in the New South Wales new home building market after a decade of underwhelming activity levels,” said Mr Bare in an August 12 statement.

“The improving situation is the result of strong population growth, the low level of interest rates, and the NSW state government focus on boosting new housing supply.”

However, both men highlighted the need for further government policy in order to help facilitate a complete industry recovery.

“It is important that the state government continues to implement policies that support housing delivery, reduces the red tape burden on the industry and works with federal and local governments to reduce the tax burden on new housing,” said Mr Bare.

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