Housing supply

Housing Supply, Affordability at ‘Crisis Point’ in Illawarra: UDIA Report | Mercury of Illawarra

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Illawarra and Shoalhaven are at a “point of crisis” as the area faces a rapidly dwindling supply of serviced land for development. That’s according to a new report, which also says the critical shortage of new homes is spreading across the region and having a major impact on “deteriorating” housing affordability. The Urban Development Institute of Australia (UDIA) NSW, which represents property developers, recently highlighted these concerns in its Building Blocks Illawarra Shoalhaven 2021 report. Read more: Kembla Grange ‘prison land’ proposed for the housing, with industrial development leading to a critical shortage of new housing across the region. It is also believed that this demand will only be exacerbated by the rate of people seeking regional housing solutions outside of Sydney. The report says this is backed up by the UDIA/URBIS homebuyer sentiment survey, which found that 33% of respondents in Sydney indicated an interest in moving, whether to the suburbs or the regions. Read more: Find out how much land in your suburbs is worth “House prices continue to climb at an alarming rate, having a major impact on deteriorating housing affordability.” Steve Mann, CEO of UDIA NSW said. “Over the past 12 months we have seen house prices increase by more than 20% in Shoalhaven and 12% in Wollongong. “Kiama now has an average home price of $1 million. “Home sales are up 50% above market expectations and we are well ahead of expected lot releases. This is the result of a combination of factors including historically low interest rates , regional migration, government home buying incentives and COVID. -19 induced space demand. Kiama was at an all-time high, but there was little to no supply, which meant prices had gone up significantly.” In 2017, we sold a 300 square meter block for $295,000, and it was resold last week at Cedar Grove Stage 2 for $680,000,” he said. Mr Morcom said he was concerned there was not enough usable land for development “anywhere in Illawarra”. . “The only way to solve the problem is to free up more land to bring prices down and give people more options.” Mr. Morcom’s proposal for a 450-lot development in southern Kiama was rejected by the advisors to Kiama earlier this year.After an appeals process, the New South Wales Department of Planning, Industry and the Environment has since become the approving authority for the project. Mayor of Kiama, Mark Honey, said the reasons for rejecting the proposal included that it would cause significant traffic congestion in the area, a lack of a commercial component, including a supermarket, and councilors concerned about the sewage and storm water capacity Cr Honey said there was little usable land available for development in the LGA but any future council land development would focus on the former area of ​​the LGA. Bombo’s career. However, he noted that the council had little control over when this might become available because the land was owned by the state government, Boral and Cleary Bros. enabling infrastructure “needed to further support up to 500,000 people who will be living in the region by 2041. The UDIA is calling on the NSW Government to commit $136.6 million for the six water and sanitation projects recommended sewers which they say will unblock 11,600 lots by 2024 in the West Lake Illawarra and Nowra-Bomaderry Urban Liberation Zones. Illawarra/Shoalhaven and is proposed for 20,000 homes, or 60% of the total 30,000 new homes to be supplied in the area by 2041. There are still large areas of unzoned land in West Lake Illawarra, including Calderwood, Cleveland and Avondale “We have focused on the enabling infrastructure needed to support zoned areas in Yallah Marshall Mount, North Macquarie and Tullimbar, which can result in the release of new housing within three years,” indicates the report.

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