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)
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.
Significant 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.