SYDNEY, July 25 (Xinhua) -- Australian property advocacy body, the Property Council of Australia, has made a call for more government support in delivering enough housing in Sydney, as latent demand adds concern to the housing supply shortage.
A recent Sydney housing analysis, released by the Property Council of Australia and Gyde Consulting, found there was an underlying deficit of housing supply in Greater Sydney, while the demand for housing increased domestically. Ongoing delivery of housing above the identified target demand is required to manage this deficit.
Lauren Conceicao, Property Council's Deputy Executive Director of New South Wales (NSW) branch, told Xinhua on Monday that the failure of reaching dwelling targets each year creates further undersupply. The state of NSW government has identified an existing undersupply of 100,000 homes.
"In 2020-21 the number of new homes completed in Sydney was 29,785, around three quarters of the annual need, creating further undersupply."
"If undersupply continues alongside projected demand increases, a further undersupply of almost 90,000 dwellings will occur by 2035-36."
Furthermore, the housing analysis said the current targets in Sydney do not incorporate the deficit into dwelling demand, meaning that there is an underlying deficit that can persist, even when dwelling targets are achieved. Housing targets must be at least met to avoid the deficit increasing amid the growing population, she added.
Conceicao explained that with a decrease in spending on items such as travel and hospitality during the pandemic, more funds were available to domestic buyers to purchase a home. The evident demand for housing in Greater Sydney may continue to impact people's affordability while housing targets are not achieved.
"State government needs to review housing targets in future plans to reflect updated population figures in housing targets. It also needs to prioritise and incentivise large housing developments (including medium and high density) to ensure a steady supply of dwellings," she said. ■