Affordability unlikely to improve due to councils ‘not taking up the challenge’

By Hannah Blackiston 02 December 2016 | 1 minute read

According to new research, developers are outstripping councils when it comes to catering for Sydney’s growing demand for new residences.

money going down drain

Conducted by JBA, Zoned out: an analysis of residential rezoning in Metropolitan Sydney has looked at proposed residential development across 16 local government areas in Sydney and found some worrying gaps between the housing that will be required for the growing population and what is planned.

According to the Greater Sydney Commission, 725,000 new residences will be required over the next 20 years in Sydney, something which the government has not fully prepared for according to the Property Council of Australia.

“The Central District plan released on Monday by the Greater Sydney Commission estimates that the district will grow by 16,260 people every year to 2036 and has a target of 157,500 more houses by 2036. Without strategic leadership from councils the housing demand from this increase in population will not be met and affordability will worsen,” said Property Council NSW executive director Jane Fitzgerald.

“The south west district will grow by a massive 18,650 people per year to 2036 and has a housing target of 143,000 houses, yet only 5 new large residential developments were led by councils in this area over the past four years. We have a long way to go to meet the targets,” said Ms Fitzgerald.

This is good news for investors already in the Sydney market, but affordability for those outside it is unlikely to improve, as these statistics are likely to see demand rise heavily and not be met over the next few years.

Developers are leading the push for new residences according to the research; 81 per cent of large developments in Sydney are led by developers against only 15 per cent council led.

“New home construction is crucial to the state’s economic fortunes as it underpins growth, jobs and affordability. Zoned Out shows us that councils are not taking up the challenge of meeting the demands of a growing population and, without better strategic planning, the community will suffer,” said Ms Fitzgerald.

“We need residential developments that provide housing for a greater number people – if not, prices will continue to rise, targets will slip and the dream of home ownership will be dashed for thousands of people.

“The districts we looked at have received millions of dollars dedicated to major infrastructure, yet we are not seeing councils leading zoning to provide for major residential development to locate houses and people within easy access to this infrastructure.”



Affordability refers to a product or service that is inexpensive and accessible for people with limited means.

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Affordability unlikely to improve due to councils ‘not taking up the challenge’
Affordability unlikely to improve due to councils
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