Cost and feasibility estimates for supplying new dwellings in New South Wales (2025 Edition)

The CIE was commissioned to produce a 2025 edition of the dwelling cost and feasibility study that we undertook in 2024 for the NSW Productivity and Equality Commission. In addition to updating the analysis with 2025 data, this edition uses a refined methodology to address limitations that could not be addressed within the timelines of the original study. 

We found that total development cost for mid-rise infill apartments (of 7 storeys) in Sydney has increased from $916,963 to $1,049,123 between 2023 and 2025, a rise of 14 per cent. We estimate that in Sydney in 2025, the total cost of delivering a mid-rise apartment is $1,049,123, below the sale price of $1,102,721, meaning that there is a positive feasibility gap of 5 per cent. However, feasibility varies substantially across Sydney, with apartment development generally only feasible east of Parramatta.

For broader context, readers are encouraged to refer to the NSW Productivity and Equality Commission's associated report, available on their website.

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