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Straits Times
14-06-2025
- Business
- Straits Times
Sydney is racing to build more homes as housing prices soar. But where is the land?
The city of 5.6 million people has a growing population and spiralling property and rental prices that have made it one of the world's least affordable cities. PHOTO: REUTERS Sydney is racing to build more homes as housing prices soar. But where is the land? SYDNEY – Australia's most populous and least affordable city Sydney has a problem: It desperately needs more housing but is struggling to find a large parcel of empty land on which to build it. The city of 5.6 million people has a growing population and spiralling property and rental prices that have made it one of the world's least affordable cities. But the authorities want to end the urban expansion into undeveloped or greenfield sites in the outer fringes, which has resulted in remote suburbs that are as far as 80km from the city centre and that often lack adequate services. Instead, local and state governments have been looking for large, open or convertible spaces within existing urban areas. Like Singapore, which will develop new housing precincts at Bukit Timah Turf City and the former Keppel Golf Course, Sydney planners have been on the lookout for available parcels that could be redeveloped. Turf City is set to have 15,000 to 20,000 public and private homes over the next 20 to 30 years, while the Keppel site will have about 9,000 homes. But the authorities in Sydney are struggling to find similar sites. The New South Wales Government proposed converting a racecourse, called Rosehill Gardens, into a 'mini-city' of 25,000 new homes as well as a train station. The 140-year-old racecourse spans 57ha of prime real estate, about 25km west of the city centre. The government offered A$5 billion (S$4.2 billion) – about 128 times the value of the land – to buy the racecourse from the Australian Turf Club, which owns and operates it. But the club's members voted against the proposal on May 27 in a 56 to 44 per cent vote, due to a sentimental attachment to the racecourse and concerns its loss would damage the city's racing industry. The government is now searching for a 'Plan B' to try to meet its target of building 75,000 new homes a year, to keep up with population growth and improve affordability. Various proposals have emerged, including the site of the 2000 Olympics, an inner city port, and a dilapidated former main road. NSW Premier Chris Minns on June 10 warned that Sydney was losing younger residents who could not afford to live in the city. 'Housing persistently is our biggest challenge, not just in the economy but in terms of intergenerational fairness and equity and giving young people an opportunity,' he said in a speech to business leaders. 'A city without young people is a city without a future, and the leading reason for that is we're not building enough houses.' Sydney has the most 'impossibly unaffordable' housing in the world after Hong Kong, according to the most recent Demographia International Housing Affordability report in 2024. The average prices for houses and apartments in Sydney are A$1.5 million and A$860,000, respectively, while the average rental costs A$775 a week. Associate Professor Laurence Troy, an expert on urban renewal from Sydney University, told The Straits Times that the government should compulsorily acquire the racecourse, which was one of the few remaining brownfield – underused or abandoned -– sites that could be converted into large-scale housing. 'Clearly we still need to build more housing because the population is still growing,' he said. 'We are basically running out of brownfield sites. If Rosehill is of such strategic importance, why is the government letting the land holders hold them hostage?' But Mr Minns has so far ruled out compulsorily acquiring the racecourse. A potential option could be to expand housing at the site of the Sydney Olympics, a 430ha site about 19km west of the city centre. The site currently has a mix of sports and entertainment venues, parklands, commercial developments and housing. The government is planning to build 13,000 homes on the site by 2050, but is set to fall far short of its target of 10,700 homes by 2030. The lack of development at the site has been blamed on delays due to toxic waste contamination at the site, which was formerly an industrial area, as well as insufficient transport options. Another option could be to shut the last operating port in Sydney harbour at Glebe Island near the city centre and replace the site with housing. But business groups say the port is crucial for the transport of building materials, and its closure could add to construction costs. Another proposal is to develop housing along Parramatta Road, a main road that is being superseded by new underground roadways. But experts say an impediment will be pollution from the road traffic, which could pose health problems. Professor Nicole Gurran, an urban planning expert from Sydney University, said that adding to the housing supply in Sydney did not necessarily depend on findin g a 'sugar hit' such as a racecourse. 'We have abundant zoned sites that are appropriate for housing development,' she said. However, the authorities largely left it to market forces to instigate construction. In recent years, she said, high interest rates and construction cost s have discouraged developers. 'While prices are stagnant and people are struggling to get loans, and with affordability so poor and banks so cautious to lend, it is hard to get projects off the ground,' she said. Professor Troy also said the government should focus on the type of housing it wants to build, rather than depending on the creation of a quick-fix 'mini-city'. Instead of building high-rise towers, which are less popular with families and property buyers, or large houses in greenfield sites, Sydney should build more medium-density housing – such as terraces and low-rise apartments – which are popular and can increase the city's overall housing density. 'We need to look at the spaces we have and think about how we can do it better,' he said. Jonathan Pearlman writes about Australia and the Pacific for The Straits Times. Based in Sydney, he explains matters on Australia and the Pacific to readers outside the Oceania region. Join ST's Telegram channel and get the latest breaking news delivered to you.
West Australian
25-05-2025
- Business
- West Australian
Budget opportunity to build homes not barriers
Perth's allure as a desirable and prosperous city is increasingly being overshadowed by the stark reality that the city is facing a growing housing crisis. The recently published Demographia International Housing Affordability report by Chapman University was the latest instalment of poor news for property buyers, with Perth ranked as the 18th most unaffordable city for housing globally. This alarming statistic underscores the urgent need for action. As the State Government finalises its 2025-26 budget, it's time to move beyond short-term fixes and embrace a comprehensive long-term vision for housing. One of the most pressing needs is a significant and strategic investment in infrastructure. We can't expect to accommodate a growing population without providing the essential services and connections which support thriving communities. This goes beyond laying more pipes and paving more roads. It requires a holistic approach to planning, which prioritises projects connecting new communities to employment hubs and providing access to quality education and healthcare. We must also embrace innovative solutions, such as smart grids and sustainable water management, to ensure the long-term viability of our infrastructure investments. Beyond infrastructure, we must also carefully consider the impact of taxes and charges on the cost of housing. While government revenue is essential for funding public services, we need to be mindful of the potential consequences of policies which add to the financial burden of building and buying homes. Are we inadvertently discouraging development or making it more difficult for young families and first-time buyers to enter the market? A thorough and transparent review of our tax system is warranted, with a focus on streamlining processes, reducing restrictions to housing mobility – like stamp duty – and incentivising responsible development which meets the diverse needs of our growing population. This review should also consider the potential for tax incentives to encourage the development of more affordable housing options such as apartments and townhouses. Finally, we must address the inefficiencies plaguing our planning system. Delays and red tape can add significant costs to development, driving up the price of housing and making it less accessible. Planning reform requires a commitment to streamlining approval processes, reducing bureaucratic hurdles and fostering greater collaboration between government, industry and the community. By investing in infrastructure, reforming our tax system and streamlining our planning processes, we can create a city where everyone can find a safe, secure and affordable place to call home. The upcoming budget presents a crucial opportunity to make this vision a reality but it requires a commitment to long-term planning, strategic investment, and a willingness to embrace bold and innovative solutions.
7NEWS
17-05-2025
- Business
- 7NEWS
Two-bedroom home on the outskirts of Sydney sold for just under $2,000,000
It has not been on the market in more than sixty years — so when a two-bedroom home was listed for sale, buyers came in droves. 18 registered bidders attended the St Marys auction on Saturday in Western Sydney and within minutes, the property sold for $1,910,000, about $300,000 above reserve. 'It's incredible,' said Peter Diamantidis of the Ray White United Group. 'A suburb record for a 1200 sqm block in St Marys.' Diamantidis says twenty years ago, properties were selling at a fraction of that price, 'Over the years — being in the area for 23 years — selling homes for $150,000. 'Now we're at nearly $2,000,000.' 50 Australia St will be in walking distance to the new St Marys Metro station and is an example of the strong demand for blocks of land in Sydney. 'Considering the new St Marys CBD and the future development of the airport, I think it's worth it,' said new owner Ning Tong. It comes as the Demographia International Housing Affordability report revealed Sydney to be the second most unaffordable city in the world. It ranked Hong Kong in first place. 'Because we haven't built enough homes to support our growing population, the gap between people's wages and the cost of housing has widened over time,' said Property Council Western Sydney Regional Director, Ross Grove. 'The reason apartments are so much cheaper than homes is because there are so many more of them and you can put so many more of them on one piece of land. 'If we want to see housing become more affordable in the need more apartments into the future.'
Toronto Star
17-05-2025
- Business
- Toronto Star
Chapman University Releases International Housing Affordability Report Revealing None of the 95 Major Markets Affordable
ORANGE, Calif., May 14, 2025 (GLOBE NEWSWIRE) — For the first time in the report's 21-year history, none of the 95 major housing markets analyzed across eight nations qualifies as 'affordable.' This alarming statistic headlines the newly released 2025 edition of Demographia International Housing Affordability, authored by Wendell Cox and published by Chapman University's Center for Demographics and Policy in partnership with The Frontier Centre for Public Policy. The annual report provides housing affordability ratings for the third quarter of 2024 in Australia, Canada, China (Hong Kong), Ireland, New Zealand, Singapore, the United Kingdom and the United States, offering a comprehensive and timely analysis of global housing market conditions.
Epoch Times
16-05-2025
- Business
- Epoch Times
1 in 3 Australian Homes Now Worth Over $1 Million: Report
Australia's housing crisis has hit new highs, with one in three homes now worth over $1 million (US$643,000), and four major cities ranked among the world's most unaffordable. Two separate reports released on May 16 reveal the depth of the country's housing crisis. New research from Cotality (formerly CoreLogic) shows that over 34 percent of homes across Australia were now valued above $1 million. Just a decade ago, in April 2015, that figure was only 10 percent. Eliza Owen, head of research at Cotality, said the million-dollar mark is becoming 'increasingly standard,' especially after median home values for most capital cities crossed that mark last year. 'But all of this sort of research points to the same thing, which is how unaffordable the Australian housing market is, Sydney in particular … It's pretty grim,' she said. Related Stories 5/11/2025 5/8/2025 Even with $1 million, Owen noted, the quality and location of available properties are deteriorating. In fact, just a few days earlier, a viral video showed a dilapidated property in Sydney's far western Mount Druitt selling for 'If you can afford these properties, you've got a very high income, you've sold another property well, or you have wealth from your family. You need that big pool of wealth to participate in the market, and it's locking out those that don't.' In an aerial view, vacant land sectioned off for housing is seen in the western suburbs of Sydney on Jan. 11, Aussie Cities Among World's Least Affordable The Demographia International Housing Affordability survey by Chapman University ranks four Australian cities among the 15 most unaffordable in the world. Sydney was ranked second globally, behind only Hong Kong. Melbourne, Adelaide, and Brisbane also made the top 10. Perth narrowly missed out, with a median multiple of 8.3—just shy of the 'impossibly unaffordable' threshold of 9.0 used in the study. The report measures affordability by comparing median house prices to median household incomes. A ratio of 3.0 or lower is considered affordable. None of the 95 cities surveyed met that standard. 'Sydney has had the first-, second- or third-least affordable housing of any major market in 16 of the last 17 years,' the report said. 'It's remarkable that Australian markets, including Melbourne and Brisbane, are now less affordable than cities like New York, London, or Chicago.' An aerial view of completed houses in a recently developed estate in Clyde North in the federal seat of Holt in Melbourne, Australia, on March 26, Stagnate as Prices Climb Owen attributed the crisis to runaway property values and stagnant wages—particularly following the pandemic-era housing boom that spread price inflation beyond capital cities to regional centres. 'You need that big pool of wealth to participate in the market, and it's locking out those that don't,' Owen warned. The lack of affordable housing options has also strained social services. Public housing stock has steadily declined, while waitlists have ballooned. Many Australians are now being tipped into overcrowded housing or, in extreme cases, homelessness. Planning Laws and Urban Containment Under Fire The Demographia report points to restrictive urban planning policies—particularly 'urban containment' rules—as a root cause of the crisis. These rules limit land supply for development, forcing prices upward and pricing out average households. Over the last 50 years, the report said, these policies have made it harder for the middle class to own a home. 'Given the primacy of housing costs in household budgets, this also means that these stronger policies have been associated with greater overall poverty,' it stated. Experts add there is a basic mismatch between demand and supply. Australia has not been building enough homes to keep up with its fast-growing population. The resulting scarcity pushes prices higher across the board, from rentals to home ownership. New Zealand Offers Reform Blueprint The report highlights New Zealand's 'Going for Housing Growth' policy as a potential model. The reform program opens land for greenfield development and uses 'Special Purpose Vehicles' to fund infrastructure. These vehicles allow developers or future residents to cover costs over time, reducing the upfront financial burden on governments. Grim Outlook Without Urgent Reform Without serious reform, the report warns, home prices will remain out of reach for millions. Major cities risk losing residents to more affordable regions or countries, weakening their economic pull and further fracturing the housing landscape. Some states, including Victoria and New South Wales, have begun encouraging higher-density development near transport hubs. But whether these plans will be implemented swiftly enough to change the trajectory remains to be seen.
