A-two-storey-residential-brick-house-building-in-Sydney-Australia

Sydney’s housing activity – FY2014 in perspective

Recent Metropolitan Development Program (MDP) publications issued by the NSW Department of Planning and Environment (DPE) provide a few interesting observations about Sydney’s housing trends.

Firstly, based on the available 2013/2014 FY data, there has been a notable rise in the number of dwelling approvals issued for the Sydney metropolitan area, compared to previous years.

Sydney Metropolitan – Dwelling Approvals (July 2011 – March 2014)

Sydney's Housing Activity

Source: NSW Government – MDP March 2014 Monthly Monitor

The vast majority of dwelling approvals in the Sydney metropolitan area for 2014 (based on DPE’s available data for January to March) were for ‘multi-unit developments’ – inclusive of semi-detached dwellings, row or terrace houses, villas, town houses and apartments.

During the period January – March 2014, there were a total of 8,849 dwellings approved. Multi-unit dwellings accounted for 5,890 of these, or 66.5% of the total number of dwellings approved.

Below we show the primary LGA locations for ‘other dwelling approvals’ (multi-unit dwellings) for FY 2013 and 2014.

Sydney ODA FY13

Sydney ODA FY14Significant contributions for FY2014 to date have been generated in the following LGAs:

  • City of Sydney – 1669 multi-unit dwellings
  • Botany Bay – 1578 multi-unit dwellings
  • Rockdale – 1555 multi-unit dwellings
  • Parramatta – 1405 multi-unit dwellings
  • North Sydney – 1063 multi-unit dwellings
  • Canterbury – 914 multi-unit dwellings
  • The Hills – 861 multi-unit dwellings
  • Hurstville – 849 multi-unit dwellings
  • Auburn – 837 multi-unit dwellings
  • Ryde – 820 multi-unit dwellings

Separate research undertaken by MacroPlan reveals that:

  • Underlying demand for apartments averaged approximately 22,000 p.a. over 2004-2013.
  • Demand was substantially higher over the five years to 2013, averaging 25,700.

Looking forward, we expect an increased appetite for apartment living from first home buyers, downsizers and retirees – and that this appetite will be met by project delivery in middle and outer ring locations that are well-connected to transport and health services and to centres of employment.

About MacroPlan:
MacroPlan regularly provides market insights and leading economic commentary for a variety of government and private organisations, across all property sectors. Please contact our Chief Economist, Jason Anderson at the firm’s Sydney office to discuss your research needs.

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