Latest comment from John Edwards, of Residex: Overall, while there was an easing in growth rates generally, the news is good with Sydney now clearly indicating the correction has probably passed. Government looks set to do its best to stimulate the economy and at the same time has failed to address the supply issues and, as a consequence, prices are set to rise as are rental yields. ------------------------------------------------------------------------ Along with the grumblings from industry bodies such as HIA, John believes the the lack of NSW govt activity to deal with the current undersupply of affordable new housing will serve to impact on prices and rents.
This seems to be a national problem regarding 'affordable' housing. I think there should be a federal govt. initiative to help address this. Creating this social distinction between haves and have nots is dangerous. Where do these ppl live if they can't afford to live in the city anymore ? Are they relegated to regional areas ? Receipe for social disorder I reckon.
Hi Kevin, re: I agree with the possible consequences, but I can't see that why the federal govt can fix this, or if they should. Housing and land release are State govt controlled and low supply results in higher prices, higher stamp duties, higher land tax and then higher rates for local govts. The states have a vested interest in the high-priced outcome that causes low affordability (... until social disorder results). If the federal govt had an initiative, eg increasing FHOG, the prices go up to a similar level of "unaffordability" (did last time) and the states collect more $ without doing any more to address the underlying problems. ... at least I'd benefit in a rise in cost/value for existing IPs I can think of a few more radical reforms, but what do you think the federal govt should do to solve what are state controlled problems? Dave
