Reform efforts under scrutiny
Housing approvals in New South Wales remain well below the levels needed to meet government targets, an industry expert has pointed out following the release of Australian Bureau of Statistics (ABS) data for November 2024.
“There is a mountain to climb in NSW when it comes to housing approvals and housing supply,” said Tom Forrest (pictured above), chief executive of property development industry group Urban Taskforce.
He said that, despite multiple state and federal initiatives aimed at boosting housing production, approvals over the last 12 months reflect “a chronic trend in the wrong direction.”
The ABS figures show that just 42,109 dwellings were approved in NSW in the 12 months to November 2024 – falling 34,000 short of the state’s annual target under the National Housing Accord.
Forrest noted that these shortfalls compound over time, making future targets even harder to achieve. He pointed to ongoing reforms by Premier Chris Minns’ government as a step in the right direction, including efforts to fast-track planning through the Housing Delivery Authority and changes to planning laws.
“The key to success will be ensuring that new housing and employment remain the focus, and that planners don’t become distracted with other portfolio imperatives,” he said.
However, Forrest was critical of some policy implementations, particularly regarding Transit-Oriented Development (TOD) precincts.
“The uptake on the 37 Tier 2 TOD precincts has been extremely disappointing and reflects a failure of those writing the policy to grasp the basic economics of housing supply,” he said.
He added that while Tier 1 Accelerated Precincts show promise, in many locations, they are “ruined by the detail.”
The delay in finalising low- and mid-rise housing reforms also drew criticism. Forrest called the delays “disappointing” given the urgent need to address the housing shortfall.
When comparing NSW’s performance to other states, Forrest noted that Victoria and Queensland are faring better, maintaining more stable housing approval trends and achieving higher approvals per capita.
“Statistics don’t lie, and as the year begins, it is clear that there is still much more to be done,” he said.
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