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Better Apartments' planning scheme reduces market choice and increases cost

Better Apartments’ planning scheme reduces market choice and increases cost

The cost of constructing a new building in Sydney, Melbourne and Brisbane is comparable, so why is there such a dramatic difference in the price of apartments?

By mandating minimum apartment sizes in Sydney after the implementation of the SEPP 65, the result was an increase in the number of bright, large, luxurious apartments, absolutely – but only for those who could afford to live in them.

Developers immediately lost out on yield in their proposed developments and delivering projects simply became too expensive. This drove down supply and as a result, drove up prices to an unsustainable level.

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