Sydney needs 770,000 more homes...

[MichaelW]

Plan reveals city needs 770,000 more homes

SYDNEY will have to squeeze in almost 50 per cent more homes for an extra 1.7 million people over the next 25 years, with many living in smaller households, a new master plan for the city's growth shows.

More than 70 per cent of the homes will have to be built in urban areas, with limits put on greenfields development to protect agricultural land on the city fringes. But the government has conceded construction levels still lag behind what is needed.

To house 6 million people by 2036, at least 770,000 new dwellings will be required, or 30,000 a year. The Planning Department director-general, Sam Haddad, conceded the present rate was barely 15,000.

Yep, Sydney's future is looking bright if you're a property investor. Quote me on this: "Sydney will perform strongly over the next decade in both price and rents". Its not Mensa...

Cheers,
Michael

 

[evand]

Supply meets demand. Big deal.

 

[HomePage]

Release the land and improve affordability, and they all could be built. But I reckon it won't happen that way in this collusive environment.

 

[JT7]

Release the land and improve affordability, and they all could be built. But I reckon it won't happen that way in this collusive environment.

Agree. Won't happen with the banks having a huge vested interest in residentual property through the finance of Australian mortgages. Finance being extremely difficult for property developers at the moment equals less supply maintains the balance and continues to drive property prices. Property remains strong and the banks love it!

 

[Ausprop]

why continue to fill the south east anyway? tis a big country. affordability issues will temper demand

 

[BV]

Release the land and improve affordability, and they all could be built. But I reckon it won't happen that way in this collusive environment.

What land?
Where?
Lets see, we have sea on the East and National parks on all other sides plus the blue mountains
There is some land on the southwest but that was reserved for the new airport.
There are small pockets of land here and there, but any significant size land is a long way away from Sydney

 

[HomePage]

What land?
Where?
Lets see, we have sea on the East and National parks on all other sides plus the blue mountains
There is some land on the southwest but that was reserved for the new airport.
There are small pockets of land here and there, but any significant size land is a long way away from Sydney

Hop in a plane out of Sydney and have a good look out the window as you take off. Plenty of land available all the way up to the mountains; enough to double Sydney's population.

 

[BV]

Hop in a plane out of Sydney and have a good look out the window as you take off. Plenty of land available all the way up to the mountains; enough to double Sydney's population.

Mate you'll be surpriced by how little land is left.
Badgery's creek belongs to the commonwealth,
Some land is only zoned for industrial use and won't change,
Western Sydney parklands are the lungs of western Sydney and are not for development, reserves and national parks are not to be touched and Holsworthy is full of unexploded amunition

 

[HomePage]

There are plenty of big cities around the world that don't have the luxury of the lungs we have so close to Sydney. And Commowealth land is progressively up for grabs, so releasability is still the key issue that could be fixed with the wand of policy. Besides, there is plenty of dirt up to the mountains to the west of the Northern Road.

 

[sports fan]

take a drive to oran park

 

[BV]

take a drive to oran park

Oran Park will have 7500 homes
so we'll still need another 762,500.....

Oran Park: The Precinct will include around 7,500 homes, a seniors living village and aged care facility for up to 400 residents, and a 30-hectare Town Centre.

Up to 25,000 people will live in Oran Park and with five schools and 18 hectares of employment land, many will be able to get a job or go to school locally.

 

[JT7]

so we'll still need another 762,500.....

Well...plenty of space going up ^^^! It's inevitable. Demographics predict the future. People are moving towards living in smaller products like units or town houses closer to the city centres. It's more common place to see one family divide into two through divorce or separation.

Sydney is evolving like other large metropolitan cities across the world. For example in London you have large centres across the city that support the immediate surrounding population. Sydney's equivalents are Penrith, Liverpool, Parramatta etc...the only problem is our state government has failed to support Sydney through appropriate infrastructure.

 

[sports fan]

Oran Park will have 7500 homes
so we'll still need another 762,500.....

Oran Park: The Precinct will include around 7,500 homes, a seniors living village and aged care facility for up to 400 residents, and a 30-hectare Town Centre.

Up to 25,000 people will live in Oran Park and with five schools and 18 hectares of employment land, many will be able to get a job or go to school locally.

mate have a look around the area bringelly, rossmore etc the acrages are $2million plus i wonder why??

 

[JT7]

mate have a look around the area bringelly, rossmore etc the acrages are $2million plus i wonder why??

Add...Kenthurst, Dural, Glenorie, Arcadia to the list...plenty of people land banking out there and the lands undervalued IMHO. 20 minutes to Castle Hill. 45 minutes to Sydney. 15 minutes across the gorge and onto a train at Hornsby straight into Sydney and to boot still semi-rural...arrhhh peace and quiet. Gods country!...but for how long? Woolworths has been up in Glenorie for about 12-18 months now and talk of Baulkham Hills council opening up the 5 acre blocks around Whites Road. Franklins just opened up at Galston and new town houses being developed. Progress waits for no man.

 

[BV]

mate have a look around the area bringelly, rossmore etc the acrages are $2million plus i wonder why??

mate, the acrages are not neccessarily going to turn into houses. Councils will have us building duplexes and units on our land before then.

People can believe anything they want but the fact remains that Sydney is not the same as the other capitals where there is vacant land as far as the eye can see so land here will attract a higher premium and the shortage of housing will remain therefore rents will also be higher.

Thats my opinion anyway

 

[Bargain Hunter]

If land suddenly became available what would happen?

Pressure released on the market could see prices take a tumble.

Developers colluding so that areas are sold in a way to ensure maximum profit and therefore little overall increase in release for actual use.

If the release included clauses that the development needed to be completed within a given period Australia would not have enough quality builders to meet the demand. So we either end up with a number of dodgy builders getting into the market (think insulation debacle), or the profits go to overseas building companies.

Perhaps the government will restrict the use of overseas builders and rigorously ensure compliance by the locals. Due to supply and demand this approach could only result in an increased build cost and likely delay to prject completion such as the ongoing BER.

And what about infrastructure; water, roads, public transport, electricity, gas, stormwater, sewage treatment and so forth. This relies on winning the support of many stakeholders all with their own agendas and demands followed by years of planning and implementation.

To release land is probably a simple stroke of a pen. The reality of managing the impacts of that decision would take a stroke of genius and an unbelievable amount of compromise from many parties to meet a common goal. Something that is not possible in the current political and social context.

Regards

Andrew

 

[Piston Broke]

Mate you'll be surprised by how little land is left.

This continually crops up by those who do not know what's happening, or those pushing there own agenda.
So let me recap for those who dont know how the RE market works:

- There is plenty land released and available
- Most of it has been available for many years
- There are at least 2 new suburbs in the SW that were planned >5yrs ago, many more elsewhere.
- Many hundreds of acres of available land in the SW alone have been put, and are still on hold over the last few years because prices are not high enough.
- At least 100 acres in the Hills district
- Much more to be built in the Penrith district
And this is only what I know about, because I was told about them 5 yrs ago.
I'm pretty sure there's plenty more that I've never heard about, so BV I'd say you have no idea what's happening around Sydney's outskirts in the way of new developments, nor understand the processes involved in bringing them to market. So you just keep believing the vendor's pitch.
This was all done long before Kristina was appointed as another puppet on a string.

PS I've also known the Federal gov's 20 yr plans for housing for a while as they approached large suppliers & infrastructure providors with estimates on available supplies of building products *& services for various locations, which doesn't get much media coverage.

 

[evand]

I agree PB. Also its not just a matter of releasing land and building homes. The problem is thats not where the majority people want to buy.

Thats why the housing shortage is a myth imo. There's plenty of land and houses available on the outskirts but they arent for everyone. In fact they are for not many.

 

[recruit2]

After living in Tokyo for 15 mths and traveling Japan, we became so used to stupidly dense cities. It ended up just feeling normal and we became really used to it. When we flew back into Sydney and looked out the window across the entire city, it looks like one big complete green park full of spare space and freedom and opportunity. When you come from somewhere like Asia, you see just how much more dense and populated a place like Sydney could potentially become. Yes it needs better infrastructure, but as populations increase, more revenue from tax pays for that stuff, so it does eventually get done. The NBN network is an example of world-class infrastructure starting to happen, slowly but it is happening.

So my thoughts on Sydney in terms of an international city, is that it is highly spacious and the density will only keep on increasing. Inner, well located land will continue to increase in value as blocks are further subdivided and purchased by developers to erect higher density living.

Drove through the Northern beaches on the weekend and quite a nice area. Whale Beach OMG paradise, but lots of other lovely spots too. Dee Why, Newport, Collaroy, Avalon etc, quite nice areas.

 

[whatever123]

How many people live comfortably on Manhattan (some in veritable mansions!), a fraction the area of Sydney.
There is plenty of scope for population growth in Sydney over 25 years.

Invest in the sharemarket! Imagine all those extra people having an increased percentage deposited into super which has to be invested somewhere so shares will have to go up!