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25 Sep, 2025

Western Sydney Residential Development Overview

Issue 6
Western Sydney enters 2025 as NSW’s housing epicentre, set to accommodate 57.7% of the state’s population growth and nearly 60% of dwelling approvals.

While interest rate cuts and the expanded 5% deposit scheme have created the most favourable financing environment in years, critical supply gaps remain. Despite 15,773 approvals in 2024/25, this still represents a 38% shortfall against annual requirements of 25,636 dwellings. Construction activity is even further behind, with just 5,369 units underway across the region.

This edition explores how policy reforms, infrastructure delivery and market conditions are reshaping Western Sydney’s development pipeline. With around 80,000 dwellings in various planning stages, the challenge now is turning approvals into construction to meet the region’s urgent housing demand.

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