Incoming housing stock: What areas will see more homes built

New data reveals the amount of property development that local councils are currently processing, and how much of that is residential.

The amount of residential projects in each LGA is different so where is more housing stock coming into the market? New PRD data offers some clues.

Tweed Shire is the Northern Rivers local government area with the most property development in 2011, with $232M in projects.

Byron Shire follows with $150M in projects in the pipeline, Ballina is at $85M, Lismore with $34M, Richmond Valley Council with $20M and Kyogle with $3.6 million.

But those desperately looking for rentals in the area should keep their eyes in the Ballina Shire, where the biggest number of residential projects on the pipeline.

Dr Diaswati Mardiasmo, Chief Economist at RPD Real Estate, said these figures do not all correspond to residential properties.

“Project development wise, which tells you (about the) incoming housing stock, is probably where the area is most ‘patchy’,” she said.

“You can see Ballina, Byron and Tweed having quite a lot of incoming housing stock, but basically none in Kyogle and Richmond Valley.

“That said, there is a similar pattern in terms of type of incoming stock, where its mostly vacant lots.

“This is good for those who would like to build, for example first home buyers; however there is a lag time in building properties and not everyone is in the market to build.

“Some people, particularly investors, would like a ready-to-occupy properties so that they can get into the rental market.”

Tweed Shire is currently showing a pipeline of projects for $232.7 million, but only 34.5 per cent will be dedicated to residential projects, or $80.2 million.

The pipeline includes 247 units, 19 townhouses, 167 dwellings and 556 lots.

Byron Shire has a total of projects with a price tag of $150.7 million, but only 27.7 per cent — or $41.8 million — are residential projects.

They include 40 units, 24 townhouses, 15 dwellings and 457 lots.

In Ballina, out of $85M in projects, 56.8 million — or 66.8 per cent — are residential.

The pipeline includes 457 lots, 15 dwellings, 24 townhouses and 40 units.

In Richmond Valley, out of $20.3 million in projects, only 18.7 per cent, valued at $3.8 million, are residential.

The list in that LGA includes eight units and nine dwellings.

In Kyogle, out of $3.6 million in projects, none reported is residential.

The amounts cited by RPD are the estimated value of construction, not the commercial value of the properties.

Dr Mardiasmo also offered some data on how much property prices have increased in the area since 2010 and in the last year in Northern NSW.