Cost and feasibility estimates for supplying new residential dwellings in NSW
The NSW Productivity and Equality Commission recently published a review of housing supply challenges and policy options for NSW. As part of this review, the CIE undertook a study into cost and feasibility estimates for supplying new residential dwellings in NSW.
We found the costs of delivering new infill apartments have increased rapidly over recent years and are driven primarily by increased construction costs. As total costs now exceed the average sale price, it suggests that the average mid rise apartment is not feasible to develop. If developers expect low feasibility to persist, we may expect impacts on future housing supply.
The NSW Productivity and Equality Commission report can be found here.
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