Climbing property prices and a growing demand to rent in NSW have boosted approvals for new medium density developments in the state, despite a slowing trend nationally.
Development approvals for units, townhouses and semi-detached houses, grew almost six per cent in NSW for the year to March 2017, according to Bankwest’s Housing Density Report.
But nationally, approvals fell 6.5 per cent to 110,471, down from 118,156 in the previous corresponding period.
The report, which analyses approvals in medium and low density housing, also found Sydney was the only capital city to jump in approvals, increasing by 11.6 per cent in the year to March.
It also showed that over the longer term, in the five years to June 2016, NSW medium density stock grew by 14.7 per cent to 860,423.
Bankwest general manager broker sales Stewart Saunders says the growth highlights the strong demand for property in Australia’s most populous state and its harbour-side city.
“The growth seen in Sydney and NSW shows the existence of a highly competitive property market there with price pressures creating continued opportunity for medium density housing in the city,” Mr Saunders said.
He said NSW’s population was having a direct impact on the housing stock.
In the five years to June 2016, NSW’s population grew 8.1 per cent to almost 7.5 million and became home to more than 562,500 more residents.
Mr Saunders said despite the growth in NSW, nationally approvals took their biggest down turn in more than four years, driven by falls in Western Australia and Queensland.
The end of the resources boom and a slowing of WA’s population growth drove medium density building approvals down 27.1 per cent, while Queensland’s surplus of apartment style accommodation pushed approvals 25.6 per cent lower.
Despite this, NSW only made up three of the top ten fastest growing local areas for medium density housing.
WA’s Cottesloe led the chart with more than half of all medium density housing approved in the area in the year to March, closely followed by Queensland’s Nerang.