The Property Council of Australia is urging the Minns government to use the 2026–27 NSW budget to tackle apartment feasibility and get thousands of already‑approved homes into construction.
Ahead of the Property Council’s 2026 NSW Residential Outlook in Sydney, NSW executive director Anita Hugo (pictured) warned that apartment starts remain well below what is needed to meet demand.
“Data from Urbis’ 2025 Apartment Essentials research shows 75% of apartments approved in Metropolitan Sydney since 2020 have not progressed to construction, with apartment starts still well below mid-2010s levels,” Hugo said.
She said years of cost escalation had pushed up commercial risk and stalled many shovel‑ready projects.
“This budget can alleviate the cost and timing barriers that are preventing apartment projects from reaching construction,” Hugo said.
NSW Treasury now reports the Housing and Productivity Fund has raised only $39 million of a $1.5 billion target, underscoring how feasibility issues are already stalling projects on the ground.
In its pre‑budget submission, the Property Council is calling for a targeted feasibility package to “kickstart apartment commencements across NSW”. Key asks include a moratorium on new taxes, fees, and charges for the duration of the five‑year Housing Accord, including suspending Sydney Water Development Servicing Plan charges and the Housing and Productivity Contribution.
The submission also proposes deferring payment of all local and state infrastructure contributions until the occupation certificate stage, improving developers’ cash flow without reducing the contribution amounts. The move would align with a 2020 NSW Productivity Commission recommendation that is yet to be implemented.
The Property Council wants the government to scale up its Pre‑Sale Finance Guarantee after it backed its first apartment project – Perifa Group’s Rozelle Village on the former Balmain Leagues Club site, which will deliver 227 apartments, including 59 affordable homes.
“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,” Hugo said.
She also stressed that delivery hinges on planning capacity within the Department of Planning, Housing and Infrastructure (DPHI), councils, and referral agencies to support timely rezonings and faster 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,” she said. “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.”
The 2026 NSW Residential Outlook will explore how to boost the speed, diversity and quality of new housing, including rebuilding feasibility, backing innovation and ensuring reforms translate into real supply. For more information about the event, click here.
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