Nearly 50,000 new homes could be built by 2029 if the government waives two levies and turbocharging planning approval deadlines, with major housing developments in the west of the city deemed financially unviable, claims a new report from the Property Council.
Presented by global property firm Savills on behalf of the Property Council, the 68-page document Release the pressure The report argued that two property taxes – the new Sydney Water Development Service Plan (DSP) and the Housing and Productivity Contribution (HPC) – were working against the agenda of government housing
Premier Chris Minns wants to speed up higher density development in Sydney.
Premier Chris Minns has pledged in NSW to deliver 377,000 new homes by July 2029 as part of the National Housing Deal, announcing a suite of housing reforms aimed at boosting anemic housing supply housing in sydney.
However, the Property Council's report claimed government red tape was inhibiting the delivery of housing in Sydney's west. The council represents all real estate sectors, from design and construction to investment, management and asset development.
Suspending new charges during the housing deal period and speeding up planning assessment times could deliver around 16,000 new homes in the western Sydney suburbs of Campbelltown and Penrith, known as in Western Parkland City, according to the report. In the strip between western Sydney and Parramatta, known as the Central River City, delaying the new taxes would bring about 33,500 new homes.
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More than a third of housing costs in Western Parkland City and 27 percent in Central River City were made up of government taxes and charges, which included developer contributions and GST.
The report found that the typical 250-unit apartment development and 115-lot development would no longer be economically viable by 2024, with DSP and HPC charges rising from a discounted rate of 25% this year to 100% in 2026. .
“There is no capacity to absorb new taxes and charges, with many new residential developments already unviable,” the report says.
