NSW State Infrastructure & Housing Market Update 2024

2024 UDIA NSW ANNUAL STATE CONFERENCE

Swoopland is honored to have been invited to the 2024 UDIA NSW Annual State Conference. During the event, we had the privilege of joining Stephen Halmarick (Chief Economist, Commonwealth Bank of Australia), Monica Gibson (Deputy Secretary, Planning and Infrastructure), Eliza Owen (Head of Residential Research, CoreLogic), and The Hon. Paul Scully MP (Minister for Planning and Public Spaces) in an engaging discussion on market trends, industry challenges, and future development directions.

NSW State Infrastructure & Housing Market Update 2024

New South Wales (NSW) is undergoing significant transformations in its infrastructure and housing sectors.

Infrastructure Investment

The NSW government has committed over $100 billion to infrastructure projects over the next four years, equating to approximately 4.8% of the state’s GDP. This substantial investment aims to rebuild essential services and support the growth of existing communities.

📈 Housing Market Dynamics

Despite this investment, the housing market faces challenges:

Economic Outlook

Chief Economist at the Commonwealth Bank of Australia (CBA), Stephen Halmarick, notes that:

🏡 Property Demand Trends

Eliza Owen, Head of Residential Research at CoreLogic, highlights that since the pandemic:

📊Development Approval Decline

Between 2012 and July 2024, NSW experienced a significant decline in development approvals:

This decline indicates a persistent shortfall in housing supply.

🏡Investment Opportunities

For investors not reliant on loans, the current market presents favorable opportunities. Notably, many high-income buyers are targeting lower-priced residential areas, particularly in the southwestern regions near the new airport.

Planning System Reforms

Monica Gibson, Deputy Secretary for Planning and Infrastructure, emphasizes the need for reform in NSW’s planning system. Minister for Planning and Public Spaces, The Hon. Paul Scully MP, acknowledges the government’s ambitious goal of building 377,000 homes in five years. To achieve this, the focus is on:

Current Construction Landscape

Currently, there are 72,000 homes under construction in NSW, predominantly greenfield developments. However, due to the high cost of transport infrastructure, the proportion of greenfield projects is expected to decrease in the coming years. To address housing supply issues, the government plans to increase density in existing urban areas.