The latest figures from the Australian Bureau of Statistics show that approvals for apartments have dropped by twenty percent since June, which is concerning if it continues, according to The Urban Taskforce.
“In June 2016, NSW approved 4,140 apartments or high density homes in trend terms but the November approvals have dropped twenty percent to 3,263,” says Urban Taskforce CEO, Chris Johnson. “The drop seems to carry on a trend over 5 months which is of concern if it continues.”
“The detached housing approvals only had a slight drop over the same period.” “With Sydney having a shortfall of 100,000 homes and needing between 6,000 and 10,000 extra new homes a year it is important that approval numbers go up rather than down. Hopefully the proposed changes by the NSW Government to the Planning Act will reverse the downward trend.”
Source: Urban Taskforce“NSW was not alone in the drop in apartment approvals with most other states also slowing down. The impact of banks being more cautious in lending funds for apartments may be having an impact. Non-residential approvals in NSW have also decreased in dollar terms from $1,052,833,000 in August 2016 to $977,804,000 in November. ““The NSW Government needs to monitor the downward trend in approvals and to ensure the planning system supports more growth. The Urban Taskforce is concerned that the recently established Planning Panels are deferring rezoning applications until councils can complete their own planning documents in areas where the state government wants new development.”