Sydney\u2019s housing pipeline has become an optical illusion, with new figures revealing the city is building fewer new homes than reported, influenced by a demolition blitz and \u201czombie\u201d projects.<\/p>\n
Analysis of ABS figures has revealed 25,552 dwellings were approved for construction across Sydney over the year, but the numbers were offset by 4331 homes getting bulldozed.<\/p>\n
This meant the true increase in housing was about 16 per cent lower than the headline approvals figures would indicate.<\/p>\n
And not every approved project is getting off the ground, with experts revealing many of the building sites approved for development have been sitting untouched, sometimes for years.<\/p>\n
Many approved projects have become \u201czombie\u201d projects \u2013 sites where the developers had the green light from council to proceed with building but not a single brick has been laid because the projects are no longer feasible at current costs.<\/p>\n
The data revealed the highest number of total dwelling approvals were in Ermington \u2013 Rydalmere (927) followed by Oatlands \u2013 Dundas Valley (288) while the greatest number of demolitions were in Ryde (69), North and East Ryde (55) and Oatlands Dundas Valley (50).<\/p>\n
The National Housing Accord\u2019s 1.2 million\u2011home target was meant to curb price growth by boosting supply, but it doesn\u2019t account for the hundreds of thousands likely to be lost to demolition. <\/p>\n
Housing Industry Association (HIA) economist Maurice Tapang expects barely one million homes to be built in the time frame, with hundreds of thousands demolished.<\/p>\n
\u201cIn net terms, we think it will be closer to 800,000,\u201d Mr Tapang said.<\/p>\n
\u201cAnd that definitely isn\u2019t enough to meet growing demand.\u201d<\/p>\n
MORE: \u2018Low\u2019: Panic as new Albo scheme backfires<\/a><\/p>\n HIA Executive Director NSW Brad Armitage said its not uncommon for there to be a lag between approvals and commencements, adding their data reveals NSW\u2019s 30\u2011year housing undersupply is at its worst with a 20 per cent shortfall in comparison to existing stock. <\/p>\n \u201cThe Department of Planning has been doing some work on so-called zombie approvals, but that\u2019s where there\u2019s been an approval in place and nothing\u2019s happened for something like 20 years or more,\u201d he said. <\/p>\n \u201cThe majority of the public are looking at something that\u2019s relatively sooner than that.\u201d<\/p>\n Mr Armitage said the biggest issue currently is feasibility, particularly in Western Sydney. <\/p>\n \u201cNot every approval will necessarily turn into a commencement, at the time the project was going through the approval process it looked like it was going to stack up, in the meantime construction costs have gone up, we\u2019ve had skills shortages and increase in infrastructure contributions,\u201d he said. <\/p>\n MORE: Jackie O\u2019s cunning $30m exit plan amid Kyle split<\/a><\/p>\n NSW homeowners Martin Beckett \u2013 CEO and founder of registered charity Charity Christ Mission Possible, supporting vulnerable people in Western Sydney \u2013 and his wife Georgina are undertaking a knockdown\u2011rebuild to create a dual\u2011occupancy for their two children\u2019s families (Tamica Ward with her husband and three children, and Timothy Beckett with his wife and two children) plus a one\u2011bedroom granny flat at the rear for themselves.<\/p>\n Driven by rising cost of living and property prices, Mr Beckett said he is \u201cgetting increasingly frustrated with government plans\u201d not thinking outside of the box.<\/p>\n \u201cIf we get this over the line \u2013 it\u2019s something that as an organisation I would like to champion,\u201d he said.<\/p>\n Recent seller Jill McGrath and her husband Jim renovated their East Lindfield home adding stairs and a garage, in the 1960s. <\/p>\n MORE: How David Jones signed its own death warrant<\/a><\/p>\n Ms McGrath said there were many builds on the street, with continued demolitions today.<\/p>\n \u201cThe one across the street that\u2019s just been pulled down,\u201d she said. <\/p>\n Ray White Upper North Shore Agent Jessica Cao said there were a lot of developers looking at Ms McGrath\u2019s site for knock-down-rebuild throughout its campaign. <\/p>\n \u201cHowever, at the moment, with the construction costs being so high they are very hesitant in committing to a project,\u201d she said. <\/p>\n \u201cWhat we are seeing across the board developers are very conservative in making the offer or bid at auction.\u201d<\/p>\n The Property Council of Australia revealed ABS building approvals data for April fell 3.4 per cent nationally, with a sharper decline in NSW dropping 9.5 per cent.<\/p>\n MORE: \u2018What downturn?\u2019 Rising prices in Sydney\u2019s new Towers of Power<\/a><\/p>\n Property Council\u2019s Group Executive Policy and Advocacy Matthew Kandelaars said approvals are an important indicator, but delivery and project feasibility ultimately determine how many homes get built.<\/p>\n \u201cAcross April we continued to see rising cost pressures, global volatility and increasing speculation and uncertainty in the lead up to the federal budget, all of which influence how projects stack up,\u201d Mr Kandelaars said.<\/p>\n \u201cSofter approvals reflect a more cautious investment environment, higher costs and greater uncertainty.\u201d<\/p>\n Property Council NSW Executive Director Katie Stevenson said approvals over the last 12 months showed the NSW housing pipeline remained fragile with 48,065 dwellings approved. <\/p>\n \u201cToday\u2019s data show the 12-month data again flatlining at fewer than 50,000 dwellings \u2013 nowhere near enough to meet the scale of housing demand across NSW \u2013 we need to build 75,000 dwellings a year to meet our target,\u201d she said.<\/p>\n NSW suburbs with the highest number of demolitions FY to March Qtr 2026SA2 Name Demolitions<\/p>\n Ryde \u2013 North 69<\/p>\n North Ryde \u2013 East Ryde 55<\/p>\n Oatlands \u2013 Dundas Valley 50<\/p>\n Panania (South) \u2013 Picnic Point 49<\/p>\n Ermington \u2013 Rydalmere 49<\/p>\n Revesby 47<\/p>\n St Ives 47<\/p>\n Chipping Norton \u2013 Moorebank 45<\/p>\n Caringbah South 45<\/p>\n Eastwood 44<\/p>\n Padstow 43<\/p>\n The Entrance 40<\/p>\n Baulkham Hills 40<\/p>\n MORE: Delta Goodrem snaps up luxury $11m mansion<\/a><\/p>\n Originally published as \u2018Zombie projects\u2019 \u2013 true extent of Sydney\u2019s housing crisis laid bare<\/a><\/p>\n