And, it has nothing to do with our addiction to expensive smashed avocado!
Put simply, our problem is our tribe…… there are too many of us, and we are growing faster than we can handle.
Earlier this year, Sydney’s population topped 5 million after adding an additional million people in just 16 years. Previously it took the city almost 30 years (or double the time) to grow from 3 million to 4 million people.
The result? Sydney is the only capital city in Australia currently undersupplied for housing.
So what does this city look like when gazing into the crystal ball?
It is projected that Sydney will have a staggering population of over 8 million people in 40 years’ time. This will require a very robust construction pace, in order to adequately provide housing for the additional 3 million people who will be calling Sydney home.
And now we get to the real guts of the problem. Developers in NSW have been hit with some of the toughest planning rules anywhere in this country, due to the requirements of the Apartment Design Guide that provide guidance on how to adhere to the principals of NSW’s State Environmental Planning Policy (SEPP) 65.
For instance, 70% of apartments must gain solar access in mid-winter for at least 2 hours between 9am and 3pm, making it much harder for many developments to be approved. There are no such planning requirements in Melbourne or Brisbane.
Add to this, Sydney’s requirement for cross ventilation, minimum space requirements and a host of other regulations that other cities don’t require, and you start to understand why we have a real issue on our hands.
Is it any wonder that those who already own property are sitting tight, or buying more? The net result will be that we will have more renters, willing to pay higher rents, much higher property purchase prices, and we will have to put up with reading about the ‘Sydney affordability crisis’ every time we pick up a newspaper.
– Kiril Ruvinsky, Director Corporate Partnerships