Industry urges long-term approach to housing supply and land release
The Housing Industry Association (HIA) has welcomed the New South Wales government’s move to consult on a new draft strategy guiding the future development of Sydney, describing it as a chance to address the city’s ongoing housing shortfall.
The draft plan is being considered against the backdrop of the national Housing Accord, which seeks to increase new home construction over the remainder of the decade. For lenders and brokers, the accord’s targets and any accompanying planning reforms are expected to influence project pipelines, development feasibility and the timing of new stock coming to market.
“The Housing Accord has sharpened our focus on opportunities to deliver much needed new housing in the short term,” said Brad Armitage, NSW executive director at HIA. “However, if we are truly going to tackle the housing supply crisis, we need to plan for beyond 2029.”
According to Armitage (pictured right), Sydney’s status as a global city made it important that the new framework support both population growth and changing household preferences.
“For any plan to work, it must provide for housing diversity that reflects the needs and aspirations of the community,” he pointed out. “This includes apartments, townhouses and detached homes.”
He also highlighted the role of new land release on the city’s fringe as part of a broader supply response, alongside infill and higher-density projects.
“Greenfield development continues to be a vital part of the housing mix, and it is essential that the plan includes a clear pipeline of affordable and serviced greenfield land beyond the current areas,” he added.
From a financing perspective, a predictable sequence of land releases, zoning decisions and infrastructure provision is central to supporting project funding and risk assessment.
Armitage stressed that the economics of new construction must underpin any planning changes. He said the HIA intended to contribute to the consultation to ensure the final strategy supports both homebuyers and the building industry.
“HIA looks forward to working with the NSW government on making sure that this plan achieves the right balance and provides for homes and communities that families not only want to live in but are affordable,” he said.
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