38,759 homes built in Sydney in 2017, smashing previous records

Posted: 28 February 2018 12:14 pm
News

The wooden frame of a half-built house.

Housing construction soared in Sydney last year, with no clear end in sight.

If you're after a solid figure on Sydney's housing construction boom it's here. 38,759 homes were completed in the harbour city in 2017.

This is the largest number of homes constructed in a single year in Sydney, beating the previous 2016 record by over 4,600 homes. By contrast, 2010 saw just 14,140 homes completed.

Broken down by area, Parramatta had the highest number of completed houses at 4,218. Sydney local government area saw 3,607 houses built, followed by Blacktown (2,939), Camden (2,841) and Bayside (2,302).

The construction boom may continue for some time yet. Large apartment projects can take years to complete. The most recent ABS housing approval figures show more than 70,000 home approvals were granted last year across NSW.

While this is good news for prospective home buyers in the country's most heated property market, the number of apartments in Sydney may have already reached demand, or even moved past it. Many Sydney suburbs have an oversupply of apartments, causing concern for some lenders and analysts.

What does it all mean for Sydney property prices?

Creating greater supply is one of the key ways to counter high house prices and help more buyers get into the market. It's also a major part of the NSW government's Housing Affordability Reforms package.

But a prominent report by ANU economists last year suggested that increasing housing supply isn't a silver bullet for housing affordability. Areas of Sydney with existing surpluses of housing still saw strong property growth.

And there's also the question of population growth. The Department of Planning and Environment forecasts state that Sydney will need 725,000 new homes over the next 20 years.

That works out to 36,250 homes a year, or just 2,509 less than was constructed in 2017.

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Image: Shutterstock

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