Australian Property Updates

Property Information & Real Estate Updates

Sydney vs. Melbourne

The Premier of NSW, Kristina Keneally does not agree with recent claims by BIS Shrapnel that Sydney will drop behind Melbourne in population within 30 years due to a housing shortage. According to industry experts Sydney’s housing market faces more challenges than Melbourne and has greater chronic housing shortages.

A recent report by the economic forecaster BIS Shrapnel claims that, Victoria is constructing homes at double the annual rate of NSW, pushing up home prices in Australia’s most populous state and shutting out new immigrants.The report states Sydney’s annual rate of population growth will fall from a projected 1.1 per cent to just 0.9 per cent a year, while Melbourne projects a long-term population growth of 1.3 per cent per year.

The figures predict Melbourne will displace Sydney as Australia’s largest city by 2037. The current level of home construction in Sydney is only at 9500 and has been below the city?s average of 17,500 a year for the past decade and well short of the Labor government’s own target of 25,000.

Ms Keneally does not accept the claim that Sydney is a ‘global city in decline’, as the Urban Taskforce report says. ‘These figures we’ve released today show that housing construction in NSW is on the rebound,’ she told reporters. ‘Sydney is Australia’s only global city and there is no credible evidence to demonstrate that is going to hange.

‘ Ms Keneally said the 125,000 figure represented 25 per cent of supply required by 2031 and developer levies were reduced during the global financial crisis. BIS Shrapnel economist Jason Anderson said the NSW government failed to take advantage of record-low interest rates and high first-home buyer grants. ‘We’ve had the best environment for housing construction in the last 12 months than what we’ve seen for a long time,’ Mr Anderson said.

NSW Opposition Leader Barry O’Farrell said the issue shouldn’t focus on the age-old Sydney-Melbourne rivalry.

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