In Episode 31 of our ongoing series, we delve into a critical issue facing the Australian property market—housing supply. With the Albanese government setting ambitious targets for new home construction, the latest figures on housing approvals paint a concerning picture. In April, only 13,000 new dwellings were approved, falling significantly short of the 20,000 needed to stay on track with the government’s goal of building 1.2 million new homes by 2029.
The Current State of Housing Supply
Housing supply has become a focal point in the Australian property market, especially in major cities like Sydney, where the demand for housing continues to outpace supply. The challenges are manifold: rising construction costs, labor shortages, and lengthy approval processes are just a few of the barriers hindering progress. The recent drop in housing approvals underscores the difficulties in meeting these targets.
For those looking to buy a house in Sydney, this shortfall in housing supply could have significant implications. Fewer new homes on the market mean increased competition among buyers, potentially driving property prices even higher. The Coposit model, which allows buyers to secure a property with just a small deposit, becomes even more relevant in this context, offering a more accessible pathway to homeownership amidst tightening supply.
Government Targets: A Reality Check
The Albanese government’s target of 1.2 million new homes by 2029 is undoubtedly ambitious. However, the discrepancy between the targets and actual approvals raises questions about the feasibility of these goals. Can the government overcome the current obstacles to ramp up housing production, or are we headed for a prolonged housing crisis?
The property market in Sydney, already one of the most competitive in the world, could face additional pressure if these targets are not met. Coposit offers an innovative solution, but broader systemic changes are needed to address the underlying issues in housing supply.
Watch Episode 31 for an In-Depth Analysis
For a more detailed discussion on the state of the housing market, the challenges of meeting government targets, and how it all impacts potential buyers in Sydney, watch Episode 31 of our series.
