Sydney Set to Get Squeezed
Tuesday, 7 October 2008
Planning experts are warning that Sydney will need to undergo major changes if it is to cope with a surging population. Released in 2005, Sydney’s Metropolitan Strategy estimated the city would need an extra 640,000 dwellings by 2031. Higher birth and immigration rates have now seen a co-author of the strategy revise this figure to 876,640 new dwellings.
At the moment Sydney looks a long way from keeping up with demand. The Housing Industry Association reports that the number of new homes being built in NSW has now dropped by 37 per cent since 2002-03. BIS Shrapnel reports the amount of new land released in Sydney is now on par with Adelaide at under 3000 lots per annum.
The growing population will put increased strain on infrastructure and see more high density development in existing suburbs. The good news for home owners is that it will also put upward pressure on prices and make Sydney property a blue chip investment.