Housing Industry Group Scores NSW 2 Out Of 5 For Planning Reform

The Housing Industry Association has scored New South Wales two out of five for planning reform in alignment with the National Housing Accord.

A core component of the accord, which was signed in 2023 and seeks the delivery of 1.2 million homes over five years, is the 10-point National Planning Reform Blueprint. Its aim is to streamline and standardise planning frameworks across Australia.

The report approvingly noted that the Minns Government is undertaking “significant” reform. It said that the introduction of a housing pattern book focusing on ‘missing middle’ developments “represents the most significant attempt in decades to diversify housing stock in established areas.”

However, despite positive indications, the HIA found that it is “still unclear” whether the Government’s actions will significantly increase housing supply.

The document identified — among other points — a need for more long-term planning, “a steady supply of shovel ready land … which would align with the market demand for detached houses with backyards” and more emphasis on infrastructure provision.

Victoria, South Australia and Western Australia scored higher.

Homes too expensive to build, says industry body

Michael Said is the HIA’s NSW policy director. “In some areas of Sydney, it costs more to build an apartment building than what you can sell those apartments for,” he told the City Hub.

Said noted a consultancy report which found that fees, taxes and regulatory costs accounted for 49 per cent of the expense of a new detached house, and 38 per cent for a new flat.

“Lack of infrastructure, particularly in new greenfield areas, is also impacting housing supply.” Premier Chris Minns recently pledged that the Government had learned its lessons about building houses before infrastructure.

Minister points to increasing construction

Planning minister Paul Scully said that housing construction, approvals and commencements are trending upward.

In the latest figures, “NSW recorded its highest housing completion numbers in five years, with more than 13,000 homes completed.” 75,000 are under construction, the most in any state.

“Importantly, we expect these numbers to continue climbing, as industry submits more proposals to build homes and create jobs.”

Opposition says Government “not delivering” on housing supply

Shadow minister for planning, Liberal MLC Chris Rath, said that the report “confirms what we have known for a long time: the Minns Labor Government is chasing headlines and not delivering outcomes for the people of NSW.”

“Even the HIA says it’s unclear whether the Government’s reforms will actually lift supply. After three years, NSW still doesn’t have certainty that this government will ease pressure in the housing market.”

Rath said that a Coalition government “will pause Labor’s new home tax until 30 June 2029 and defer payment until completion, restore First Home Buyer Choice, and encourage downsizing with a stamp duty exemption for empty nesters.” 

He added that they would repurpose Long Bay Jail for approximately 12,000 homes, progress with rezonings in Erskineville, Macdonaldtown, Newtown and St Peters for 10,000, and deliver the Camellia–Rosehill Place Strategy for 10,000 more.

Market not delivering affordable homes, says Greens MP

Balmain Greens MLA Kobi Shetty told this masthead that while more dwellings are “absolutely” needed, “we need the right homes at prices people can actually afford.”

“Doing density well means building near transport, jobs, and infrastructure — not forcing poorly planned development onto communities without the services to support it.”

“We also know that supply alone won’t fix the housing affordability crisis. The HIA report fails to recognise that the market isn’t delivering homes people can actually afford. Because of this, nurses, teachers, and young people are being locked out of our city.”

Shetty said that the Government should be investing directly in public and social housing. She identified “a once-in-a-generation opportunity” with the Crown-owned old Fish Market site, “but instead they’re offering just 7.5 per cent affordable housing.”

“Public land should be used for public good. That means delivering public and social housing, not handing it over for private profit.”

Sydney lost about 100,000 residents on balance to the rest of Australia last financial year, a figure spurred by the cost of housing.