Adelaide to outstrip Sydney's housing growth

Wednesday 25 March 2009

Article by Mozo

There will be fewer new homes built in Sydney this year than there will be in Adelaide, figures seen by the Daily Telegraph show.

And while residents wait eagerly for a flow of cash to help build new affordable housing, the rental crisis is likely to take availability into new lows.

Availability is currently running at a miserable 1.1 per cent, official stats show.

The shortage in housing comes despite a wave of interest in new builds after the Reserve Bank of Australia’s interest rate cuts and the doubling of the first-home buyers’ grant.

Funding for new homes may even scarcer when the grant returns to normal levels in June.

BIS Shrapnel property research group economist Jason Anderson said that Sydney residents will be particularly hard hit because commercial developers are shying away from investment big apartment complexes.

"Sydney is much more dependent on medium-to-high density development and that has dried up because of funding issues," he warned, adding that this is likely to put "extreme pressure" on renters.

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