Home construction materials in Sydney might continue to be in demand this year, following a record level of housing projects in 2017.
Property developers should check where brick prices in NSW are the cheapest to take advantage of strong demand. Likewise, it may also prompt sellers to consider putting their homes on the market and capitalise on high prices as a result of market activity.
Record Housing Boom
Builders completed more than 38,700 homes in Sydney last year, which surpassed the previous record of more than 4,600 residential properties in 2016, based on figures from the Australian Bureau of Statistics (ABS).
Parramatta accounted for the majority of completed homes with more than 4,200 houses. Across the state, ABS data showed that there were over 70,000 granted housing approvals in 2017. Part of the reason there were more built homes involved an effort by the government to lower prices.
However, the home construction activity to boost affordable housing has reached into Sydney’s borders where farms are in danger of becoming extinct.
If the current pace of housing construction continues, experts believe that city’s farming activity might severely take a hit. University of Technology Sydney (UTS) researchers said that crop production in the Sydney Basin might become smaller by 2031.
The region currently accounts for 20 per cent of the city’s food supply, but it may drop to six per cent in the next 15 years, according to UTS researcher Laura Wynne.
This presents a complex problem since both are important to handle a forecast population growth in Sydney, which would increase by 1.6 million Australians by 2034.
Home builders should look into development opportunities in parts of Sydney where the cost of labour and materials remain cheap, although they should think carefully before planning to convert farmland.