The Property Council of Australia, Australia’s peak industry body representing the property industry, is calling on both sides of politics to address the housing affordability issue by address housing supply imbalances.
In their recent press release “Turning Up The Heat On Housing Affordability” 10 May 2016, The Property Council points out that in Australia’s most unaffordable city Sydney, a two-income household will spend an average of 35.5^ on mortgage repayment.
Below we have reproduced comments by Ken Morrison, CEO of The Property Council, in their recent newsletter:
“There is no doubt that housing affordability is a massive issue for Australia.
However, instead of a debate about supply and demand, we’ve had a negative gearing debate masquerading as a housing affordability debate.
Increasing supply is the key to helping make housing more affordable.
It doesn’t matter if it’s real estate, or any other market, price is the result of supply and demand
The gap between supply and demand is well documented. The National Housing Supply Council, prior to its abolition in 2013, said Australia had a housing deficit of 228,000 homes. It’s a gap for which all Australians are paying the price.
Australia’s challenge is to increase supply so that we can tackle the housing deficit – and help make housing more affordable.
With our cities growing, this is more important than ever before.
Our policy agenda is directed at unblocking supply – and encouraging needed investments in infrastructure so that our cities are more liveable.
That’s why we are:
- Supporting negative gearing and capital gains tax arrangements – because it brings investors into the market who fund almost one third of new housing
- Releasing detailed papers on how the Commonwealth can incentivise the states and territories to reform restrictive planning systems
- Encouraging and promoting ‘UK style’ City Deals which make all levels of government partners in growth.
All of these initiatives are vital to ensuring that our industry continues to build the housing that our country needs – and helps keep the Australian dream within the reach of ordinary families