Extra Housing to Reduce Cost of Real Estate in Sydney

Real estate in Sydney is set to receive a boost as the state government looks to improve affordability across the country's most populous city.

With the Harbour City expected to grow by 1.3 million people over the next two decades, the O'Farrell government unveiled plans that will see 111,700 homes built across 31 new and existing suburbs, with the potential for an additional 60,000 pieces of real estate.

Announcing the move at Box Hill - a suburb which will see 9,600 properties built - premier Barry O'Farrell said that Sydney needs the extra residential real estate that his government will deliver.

He explained: "The steps we've taken have helped lift housing completions in Sydney in 2012 to 18,186 - the highest level since 2006.

"But that isn't enough - we need around 27,400 additional homes in Sydney each year to keep up with population growth and to keep home prices affordable."

Mr O'Farrell added that the government is proceeding with this project, in conjunction with nearly $62 billion worth of infrastructure, including the north-west and south-west rail links, the light rail extension to Randwick, upgrades to Richmond and Schofields roads and the widening of the M5 west.