Residential Property

Files for Download

The New House Market in Outer Sydney

After peaking at 8,800 lots in 1999/2000, broadhectare lot production in Outer Sydney is now running at around one third of these levels - averaging under 3,000 lots per annum since 2005/06 - with new houses approved in Metropolitan Sydney being at 50 year lows. While the deterioration of affordability appears to have triggered the decline, some correction in land prices still has not stimulated demand. The Federal Government’s First Home Owner’s Grant Boost Scheme has assisted first home buyers to buy new entry level houses. However, demand across the remainder of the new house market remains weak.

The New House Market in Outer Sydney seeks to determine whether the decline in new house production has become a permanent fundamental change in the Sydney residential market, or whether new house construction on broadhectare lots can return to the levels of previous years once the supply side and affordability issues have been ironed out. This study examines all aspects of the new house building market and demand for broadhectare land.

 


Read More

Sources of information in the analysis include:

  • Special run 2006 Census data;
  • Face to face interviews of potential purchasers of new houses;
  • Focus groups of renters who are looking to enter the market as owner occupiers;
  • A comprehensive internet survey of 646 recent home purchasers and those in the market looking to buy a dwelling; and

Face to face interviews with developers of subdivisions in Outer Sydney. Questions that the report seeks to answer include:

  • Is there a permanent demographic or a sociological change that is behind the low levels of activity?
  • How is the cost barrier for new houses influencing demand?
  • Does the current product adequately meet market requirements?
  • What are the issues facing land supply?

The New House Market in Outer Sydney provides a comprehensive overview of the issues facing the broadhentare subdivision market in Outer Sydney, and is a necessary tool for any of the stakeholders operating in this challenging market.

 Price:
Price on application

Contact:

Angie Zigomanis

PH: +61 3 9614 0011