The Property Council says New South Wales is currently 100,000 homes short of where it needs to be and that deficit is rising.
The Property Council of Australia has welcomed the NSW Government’s strong commitment to help residents achieve home ownership, but has emphasised the critical role of supply measures in the policy mix.
NSW Executive Director Luke Achterstraat said the government’s shared equity trial was an indicator of the depth of challenges in the housing market.
“There is no doubt we are experiencing a housing supply crisis in NSW which is putting a strain on affordability, both in terms of ownership and rentals,” Mr Achterstraat.
“The emphasis on assisting some of the state’s most vulnerable people through this assistance program is a well-intentioned endeavour. For many Australians, their home is their most valuable financial asset so housing security can create financial security.
“The shared equity trial is using a targeted model of 6,000 places over two years, therefore is unlikely to substantially affect prices.”
However, Mr Achterstraat said this kind of government intervention was a reminder that urgent action was required to address the housing market.
“Whilst these top-down initiatives can assist a few, policies that promote housing supply are the only way to address housing affordability for the many,” he said.
“In NSW we are still some 100,000 homes of where we need to be, and that deficit is increasing.
“We need to see significant reform to the planning system including an emphasis on efficient DA approvals, reduced red-tape and timely re-zonings.
“In NSW, it still takes around 200 days for a block of apartments to be approved, compared to 100 days in Queensland and even Victoria.”
Mr Achterstraat said there has been a significant amount of policy fatigue in recent years so now was the time to double down on delivery in the planning system.
“NSW has a growing population seeking a diverse range of housing options. There needs to be a renewed focus on capitalising on metro lines as well release of properly planned and development-ready greenfield land,” he said.
“The provision of adequate housing supply means giving Australians housing choice – including options for older Australians to live near their kids, and teachers and nurses who deserve to live close to work.
“The housing affordability crisis has also entered the regions such as the Hunter and the Illawarra so it is clear we need a whole-of-government approach to address this.
“Housing affordability isn’t a nice to have, it’s a must have. Although people feel the dream is fading, we can actually turn it around. With the right decisions, we can in fact keep that dream alive for the people of NSW.”
Recent research conducted for the Property Council found 70 per cent of voters feared the dream of home ownership was now out of reach for most Australians.
Source: Property Council of Australia