Urbis has contributed to a new Urban Development Institute of Australia (UDIA) NSW report – Future Apartments: A Reform Agenda for Feasible Housing Delivery – which outlines targeted reforms to improve apartment delivery across New South Wales amid mounting cost and feasibility pressures.
The report also highlights the need for coordinated reform to better support apartment development and increase housing supply, identifying opportunities to reduce development costs and improve project outcomes, including targeted changes to the Apartment Design Guide and reforms to the timing of development contributions.
It puts forward 12 recommendations aimed at better aligning policy and delivery settings with the realities of apartment development, while continuing to support infrastructure funding and more affordable housing outcomes across NSW.
New apartment market activity in Greater Sydney has weakened significantly, with 2025 new unit sales down 23% over the year and 55% below the decade average, at a total of 13,825 transactions.
This level of activity sits well below the 2017 peak, when sales were over double current volumes. Settled sales of new multi-units fell to historic lows in 2025, declining 23% annually to approximately 6,250 transactions.
This is 55% below the decade average and 72% lower than the recent peak in 2021, highlighting sustained softness in demand for new apartment product. There have now been three consecutive years of exceptionally low new apartment sales, reflecting a constrained pipeline of new project launches driven by ongoing feasibility and viability challenges.
Multi-unit completions across Greater Sydney also declined sharply, falling 41% in 2025 to fewer than 10,000 dwellings. This represents the lowest level of completions in over 15 years, sitting 42% below the decade average and around 70% below the 2018 peak of 33,430 units.
Approval activity has not translated into sufficient supply outcomes, according to UDIA’s report. While multi-unit approvals increased by 36% over the year, total approvals of 19,260 remain 31% below the decade average and 63% below the 2016 peak, indicating a structurally constrained development pipeline.
The subdued apartment approval environment is expected to flow through to sustained low construction activity, with limited near-term capacity for a recovery in apartment supply.
Median new unit prices in Greater Sydney continue to rise despite weaker demand, increasing by 3% in 2025 to $897,210. Sydney remains the most expensive market nationally, with new units priced 22% higher than the combined capital city average, according to the UDIA National – State of the Land, 2026 report.
Future supply is forecast to remain significantly below required levels, with residential completions projected to undershoot NSW Government dwelling targets for Greater Sydney by 53% in 2024 and 48% in 2025.
Over five years, this equates to a cumulative shortfall of approximately 150,000 dwellings. Structural weakness in multi-unit feasibility and delivery is expected to persist through to 2030, with continued underperformance against housing targets driven by constrained approvals, limited project launches, and declining completions.
