Ahead of the Property Council's NSW Residential Outlook in Sydney today, NSW Executive Director Anita Hugo said NSW apartment starts remained far below historic levels.
"Data from Urbis' 2025 Apartment Essentials research shows 75 per cent of apartments approved in Metropolitan Sydney since 2020 have not progressed to construction, with apartment starts still well below mid-2010s levels," Ms Hugo said.
"Years of cost escalation have increased commercial risk and slowed the commencement of approved projects.
"This Budget can alleviate the cost and timing barriers that are preventing apartment projects from reaching construction," she said.
The Property Council's Pre-Budget submission calls for a targeted feasibility package to kickstart apartment commencements across NSW, including:
a moratorium on new taxes, fees and charges throughout the five-year Housing Accord period, including suspending Sydney Water Development Servicing Plan charges and the Housing and Productivity Contribution.
deferring payment of all local and state infrastructure contributions to the occupation certificate stage, improving cash flow without reducing contribution amounts, consistent with a recommendation from the NSW Productivity Commission's 2020 review that is yet to be implemented.
The submission also calls for the NSW Government to build on the positive work of the Pre-Sale Finance Guarantee and continue expanding the program so more projects can qualify.
"NSW's first Pre Sale Finance Guarantee deal – announced last month – shows the model works. Continuing to build on this will help more approved projects meet today's pre-sale requirements and move into construction," Ms Hugo said.
Ms Hugo said delivery also depends on system capacity - and the Property Council's submission calls for resourcing within the Department of Planning, Housing and Infrastructure (DPHI), councils and referral agencies that will support timely rezonings and streamlined assessments.
"Recent planning reforms – including the establishment of the Development Coordination Authority and a new targeted pathway for simpler projects – support real progress toward a more efficient system.
"We've seen strong commitment from Government with these reforms which will help to clear the backlog, and with the right Budget support in June, we can turn that momentum into faster decisions and more homes on the ground," she said.
The Property Council's 2026 NSW Residential Outlook will examine what it will take to lift speed, diversity and build quality, including rebuilding feasibility, backing innovation and strengthening implementation across government and industry to translate reform into real housing supply.
Speakers include The Hon. Anoulack Chanthivong, Minister for Building, Ian Devereux from Aqualand, Karen Armstrong from Colliers Urban Planning, Kiersten Fishburn from the Department of Planning, Housing and Infrastructure, and Patrick Elias from Urban Property Group. More details on the website.
