When it comes to skyrocketing house prices and Australia’s housing affordability crisis, industry groups are in lockstep that accelerating supply is key to a long-term solution.
The Real Estate Institute of Australia (REIA), the professional body for Australia’s real estate sector, says while there is an unfortunate “complete lack of unity” in decision making across the political spectrum when it comes to housing Australians, the “need to build more housing stock across the private sector and social and affordable housing” is obvious.
The requirement for urgent action comes after its most recent Housing Affordability Report found further affordability declines in NSW, Queensland and South Australia.
REIA president Leanne Pilkington says cost-of-living has never been more top of mind. “It was these two things that characterised the September quarter.
Nationally, the outlook for Australians serving a home loan continued to be challenging with the cash rate now at 4.35 per cent.
Housing affordability has declined over the September quarter 2023,” she says in a statement accompanying the lobby group’s most recent report on the issue.
“The proportion of income required to meet the average loan repayment increased to 45.5 per cent. Housing affordability has declined over the September quarter 2023, with the proportion of income required to meet the average loan repayment increasing to 45.5p er cent, a marginal increase of 0.1 percentage points.”
The Property Council of Australia, the national lobby group representing property developers and property owners, is also urging more housing supply as a priority.
Analysis by the group has found several districts across Greater Sydney are lagging behind areas in the city’s west like Blacktown, The Hills, Penrith, Liverpool and Wollondilly on delivering enough housing to help ease Australia’s housing squeeze.
Property Council of Australia chief executive Mike Zorbas says the industry remains broadly optimistic about its outlook, but that inconsistent planning regimes and “almost monthly tax hikes around the country are clouding the outlook”.
“While it is pleasing to see consistency of industry confidence, it is clear that housing supply and affordability continues to be a concern for industry experts, just as it will remain a decisive issue, alongside immigration, at the next federal election,” Zorbas says.
In a positive sign for the sector, the Property Council’s December survey found industry confidence remained steady, with its Confidence Index increasing one point to 114 index points.
A score of 100 in the Confidence Index is considered neutral.
The survey canvassed the views of almost 750 respondents, including owners, developers, agents, managers, consultants and government in all major industry sectors and regions.
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