Property Council Hunter and Central Coast Regional Director Stephen Crowe said while the region continues to experience strong demand for housing and employment growth, many projects are struggling to proceed because the economics don't stack up.
"There's a strong focus on housing targets and supply, but we also need to talk about the feasibility of delivering new projects in the current environment.
"The development industry is facing a perfect storm of rising construction costs, financing constraints, labour shortages and ongoing market uncertainty. Many projects that would have proceeded a few years ago are today being delayed, redesigned or shelved altogether.
"If projects are not financially viable, they don't get built and that has serious implications for housing supply, affordability and the Hunter's ability to accommodate future growth."
On 27 August, the Property Council's Hunter Future Leaders event, Shifting Ground: How Economic Pressure Is Reshaping Development, Construction and Decision-Making in Property, will bring emerging industry leaders and senior property professionals together to discuss how economic conditions are impacting development, construction and investment decisions across the Hunter.
The event will bring representatives from Colliers, DOMA, Richard Crookes Constructions and Preston Rowe Paterson together to explore:
- How economic conditions impact development, construction and investment;
- Construction cost trends and their effect on project feasibility; and
- Market confidence and the outlook for future housing and commercial supply.
Mr Crowe said understanding the changing feasibility equation was critical to addressing the Hunter's broader housing challenges.
"Housing affordability doesn't begin when a buyer walks through the front door, it begins years earlier when decisions are being made about whether a project can proceed.
"Every additional cost, delay or barrier affects the viability of housing projects and ultimately contributes to reduced supply.
"If we're serious about delivering more homes, growing our economy and attracting workers to the Hunter, we need a much stronger focus on the conditions required to make development feasible."
