Lot sizes decrease, Sydney feels the pressure

While-some-initiative-are-in-place-to-speed-up-planning-processes-one-industry-commentator-says-not-enough-is-being-done_157_65255_0_14093159_300Housing supply is a pressing issue for Australia, with areas such as Sydney firmly feeling the squeeze from domestic home buyers, investors and migrants who are attracted to the city’s excellent transport infrastructure and business opportunities.

When it comes to lot sizes, it appears that they’re getting smaller, according to a March 26 release from the Urban Development Institute of Australia (UDIA).

Decrease over the decade

Residential lots have decreased in size by 29 per cent over the last ten years, highlighting the pressure on housing supply nationwide.

While the federal and state governments have backed various development projects to address the demand for a range of dwellings in Sydney, the UDIA doesn’t feel as though enough has been done to fix the situation.

Policy issue and slow planning

Rather than the issue being one of simply opening up more land lots – which developers and subsequently investors can capitalise on – the UDIA points to policy flaws as being the root of the problem.

“Governments around the country are failing to take action to address the key barriers holding up the supply of land for residential development,” stated UDIA President Cameron Shephard.

Slow planning and approvals systems were cited as part of the problem, as well as high taxes as affecting land affordability.

However, the state government has recently announced $1 million in grants to enable local councils to shift planning processes online with expert software.

While there is an awareness of the issue on behalf of government departments and industry commentators and some action to address the problem, it’s the opinion of someone that change is not happening fast enough.

However, there are still opportunities abound for investors. With housing affordability shifting certain demographics from home buying to renting, owning rental properties in areas that are popular with a range of tenants can prove lucrative.

Leave a Reply

Your email address will not be published. Required fields are marked *