Nothing new about New South Wales

Robert SimeonDecember 8, 2020

Sydney has well and truly lost its X-factor, thanks to more than a decade of infrastructure paralysis where the vision was blinded by government incompetence and bureaucratic blunders. More ironic the name – New South Wales – given that nothing “new” has happened and a master plan is well overdue. The New South Wales economy is ranked last among the state and territories, according to the latest CommSec survey. The Australian Bureau of Statistics reported that final demand grew by just 0.4% in the March quarter of 2011. To make matters worse, the state coffers won’t be returning to surplus anytime soon – so where did all the money go, given the previous government has left very little to show following 15 years in office?

It was evident at the March 2011 state election that the constituents had had enough when the Coalition recorded a two-party preferred vote of 64.2%, an overall swing of 16.5%. Both the vote and swing are likely to be records for the post-war period. The Liberal Party polled 50.6% of the first preference voter in greater a Sydney, as opposed to 28.3% for Labor.

The late Joh Bjelke-Petersen once said “the strength of the state’s economy could be gauged by counting the cranes on the Brisbane skyline.” I don’t see many cranes in this 2011 aerial shot by Tim Mooney.

The latest ABS report has Sydney’s population at 4,575,532 and climbing yet, NSW infrastructure remains in the doldrums. NSW keeps falling behind the other states and territories, growing just 1.2% last year to 7,272,200. Last year 94,668 NSW residents decided to relocate to another state while 83,425 moved into NSW – a net loss of 11,243. Quite amazing that in this day and age NSW now finds itself in with more departures than arrivals.

The tools have been laid down, as construction in Sydney is well behind the other Australian cities – it is becoming quite clear that we no longer have a culture for construction. The ABS reports that last year 27,655 houses and apartments were constructed in NSW. Victoria recorded 50,700 (nearly double NSW), 31,611 in Queensland and 22,315 in Western Australia. To make matters worse just 16,118 new houses were built in 2010, Victoria led the way again with 37,218, Queensland with 21,764 and Western Australia constructed 18,442. Sydney has the lowest vacancy rate for rental properties in Australia, at just 1% – the general rule of thumb is that this figure should sit between 2% and 3%. The rental vacancy rate will continue to decline, forcing rents up further, given just 19,111 dwellings were approved for construction in Sydney between July 2010 and May 2011. Spiralling rents are forcing families further west as they seek rental relief affordability.

Bennelong MP John Alexander recently wrote in The Australian: “The national cost of traffic congestion through productivity and efficiency losses is estimated to be over $10 billion each year and growing exponentially. Sydney’s population has grown at a staggering rate. Policies of ‘urban infill’ with minimal additional infrastructure have led to additional cars forced onto congested local roads with no real plan to increase capacity. Australia’s largest capital city finds itself in a sad state as a result of a failure to plan for future growth compounded by sky-rocketing property acquisition costs to build necessary infrastructure.

“By example, a crucial heavy rail line to service the burgeoning north west of Sydney, the North-West Rail Link, was planned in 1998 and costed at $360 million. Thirteen years later, without a sod turned, and needing to include a few extra stations due to population growth, the cost is now estimated to be north of $7 billion and rising.”

So why is the Gillard government spending $50 plus billion on the NBN Co? Obviously the government believes that faster internet speeds are more important than faster transport infrastructures.

Darling Harbour was opened in 1988 (I’m hard pressed to think of another infrastructure initiative, aside from freeways), and the Sydney Olympics were in September 2000. Since the Olympics in 2000 it looks very much like it was not only the crowds and participants who left. Throw in GST receipts and the most expensive real-estate stamp duties in Australia – yet nothing to show.

Just like the NSW budget black hole – the once-named Premier State is now in a state of disrepair requiring the biggest drawing board in Australia’s history.

Robert Simeon is a director of Richardson & Wrench Mosman & Neutral Bay (RWM) and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog Virtual Realty News since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.

Tim Mooney specialises in aerial photography, and he has a particular passion for property photography. 

Robert Simeon

Robert Simeon is a director of Richardson Wrench Mosman and Neutral Bay and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog Virtual Realty News since 2000.

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