The Urban Development Institute of Australia (UDIA) NSW has welcomed the State Government's Sydney housing completion figures, but said more needs to be done to address chronic undersupply issues.
UDIA NSW Chief Executive Stephen Albin said Sydney is currently producing 35,170 homes on an annualised basis - more than 7000 homes short of demand*, and that is "alarming".
"We're not only dealing with decades of housing undersupply in Sydney, we're continuing to create that undersupply - and we're nowhere near addressing it," Mr Albin said.
"With low interest rates we're still 7000 homes short of demand, that's what's causing our affordability issues."Mr Albin said the past couple of years housing completions in Sydney have been tracking in the right direction, but more can can be done to accelerate supply.
"Recently announced incremental changes to the planning system are positive.
"Industry continues to operate under a planning system that is outdated and consequently full of duplications in processes and redundant rules, leading to delays.
"We're also very keen to see the Greater Sydney Commission delivered, and functioning to support the execution of Sydney's growth roadmap, A Plan for Growing Sydney.
"On top of that, the Government needs to reinstate housing delivery targets, and stick to them."Mr Albin also said the Government needs to:
Immediately allocate the Housing Acceleration Fund to key growth areas in Sydney, the Central Coast, Illawarra and the Hunter.
Make the Housing Acceleration Fund a permanent line item in the State Government budget.
Release a greater Sydney land release policy to accelerate housing delivery, add transparency to the current land release system and boost project investment confidence.
*Calculated from draft Sydney Metropolitan Strategy housing target figures, 2011 NSW Planning Department dwelling forecasts and 2015 State Government population figures.
