Housing Approvals Slowing Down In NSW

There are signals in the Australian Bureau of Statistics September Approval figures that the market in NSW is slowing down, says the Urban Taskforce.

“In September 2015 the NSW approvals were 5,292 which is 253 less than the July figure in trend terms,” says Urban Taskforce CEO, Chris Johnson. “The main drop in approvals was from the high density apartment sector which seems to be slowing down as urban renewal sites become less available through complex planning systems.”

“High density apartments are still performing well in NSW at 3,085 approvals against 2,208 houses. The big question will be whether the falling approval numbers continue downwards or bounce back again.”

“The tapering off of home sales at auctions in Sydney is another signal that the housing market is slowing down.”

“It will be important for the soon to be established Greater Sydney Commission to champion housing supply across Sydney by simplifying the planning system and by supporting new development.”

“The last year has been boom times for housing supply in metropolitan Sydney but even with the increased confidence from the State Government housing completions for the 2014/2015 year were 27,348 against a target of 33,200 a year according to figures from the Department of Planning & Environment. NSW should be exceeding the 20 year average for housing supply in these economic boom times. To be 5,000 below the average number of new homes is of concern.”

See below graph on New Monthly Private Sector Home Approvals NSW based on ABS figures: