Western Sydney is expected to carry a significant share of Sydney’s future housing growth. But while the demand for new homes is clear, the pathway to delivering them is becoming increasingly difficult.
That challenge was at the centre of the Property Council of Australia’s Western Sydney Feasibility Fixer Breakfast, held this week at CommBank Stadium in Parramatta, where Coronation’s Head of Urban Transformations, Aras Labutis, joined industry leaders to discuss the pressures affecting apartment feasibility and what needs to shift to get more projects moving.
For Aras, the issue is not simply one of planning approvals or housing targets. It is whether approved projects can ultimately be financed, constructed and delivered.
“Feasibility is where housing ambition meets delivery. If projects do not stack up, they do not get built.”
Across Western Sydney, developers are navigating a combination of rising construction costs, increasing contributions, car parking requirements, complex basement design and a more cautious approach to risk. Individually, each can affect project feasibility. Combined, they can determine whether a project proceeds at all.
This is particularly significant in a region where substantial investment has already been made in transport and infrastructure, and where housing growth is critical to supporting new and expanding communities.
The challenge now is ensuring the settings around housing delivery keep pace.
The panel discussed the need to examine the cumulative impact of planning, infrastructure and funding requirements, rather than considering each in isolation. Development contributions were one example raised during the discussion, alongside the cost and complexity associated with basement construction and parking provision.
Emerging construction models were also part of the conversation.
Modern methods of construction have the potential to create efficiencies in the way housing is delivered, but adoption across the industry remains relatively slow. Upfront investment, procurement models and the need for scale can make new approaches difficult to implement, particularly in a market already facing significant feasibility pressures.
For Coronation, the focus remains on the practical conditions required to move projects from ambition to delivery.
Housing targets are important, but they need to be supported by planning, funding and delivery settings that recognise the realities of developing complex projects.
As Western Sydney continues to grow, the conversation around housing supply will increasingly need to move beyond how many homes are planned and towards what will actually enable those homes to be built.
Aras was joined by Steven Mann of FREECITY, John Engeler of Shelter NSW, Catherine Modini of Urban Property Group and Georgia Quinn of Patch Planning.