The CEO of an award-winning group has urged the state government to increase the pace of development of properties in New South Wales to help new buyers entering the market.
Douglas Driscoll, CEO of Starr Partners, said the state government needed to speed up its plans for property development in NSW, and especially Sydney, if first home buyers were to stand any chance of securing a home in 2014.
Currently, NSW, like much of the country, was experiencing a housing shortage.
“Stock levels will continue to be an issue well into the New Year as buyer demand – especially from investors – shows no sign of abating,” said Mr Driscoll.
“Now is the time for our local politicians to work together to find a solution. The NSW government needs to spend more time focusing on the real issue faced by first home buyers – the significant undersupply of new properties.
“Right now, NSW is short of 50,000 houses and its Planning Bill, designed to address this shortfall, has already been delayed for more than two years as a result of conflicting party views. Action needs to be taken now to find a solution to the pending crisis.”
The Housing Industry Association has predicted there will be an overall shortage of more than 155,700 homes in New South Wales by 2020.
“NSW is like a ticking time bomb. In only eight more years there won’t be enough homes built, especially in Sydney’s metropolitan area to accommodate the expediential growth in population. Nationally, we’re growing at more than 1,000 people per day,” said Mr Driscoll.
With limited new stock available, Mr Driscoll also questioned the benefits of stamp duty exclusions for first home buyers.
“The government’s incentive of zero stamp duty on new build properties will not provide an opportunity to first home buyers if there are no homes available. This incentive needs to be extended to existing properties to give everyone a fighting chance at property ownership,” he said.