15 September 2008
Todays launch of the $512 million Housing Affordability Fund by the Federal Government is a welcome first step in developing a national solution to Australias home affordability crisis, according to the Urban Taskforce.
Now more than ever, we need the Federal Government to step in.
Federal funding can help unblock plans to get greenfield land developed with newly serviced residential housing lots and to foster to development of more compact pedestrian friendly communities in the inner suburbs of our major cities.
Thats why the Housing Affordability Fund is a welcome initiative.
It tackles the high holding costs caused by sluggish planning processes.
These costs account for as much as 15 per cent of a project, which adds $4 billion to the cost of development in NSW alone.
These holding costs are ultimately passed on to home buyers or worse still stop many new homes from being developed at all.
Infrastructure charges are also killing opportunities to construct new housing.
Earlier this year Baulkham Hills Shire Council, in Sydney, released plans to impose a levy of $50,700 on new residential lots.
Federal funding for water, sewerage, transport, and open space has the potential to reduce some of these over-the-top levies.
We are particularly pleased that the Federal Government has accepted our arguments and will allow developers to apply directly to the federal government for funding.
This creates a safety valve when local councils are uninterested in taking advantage of the new fund.
The expressions of interest are due to the Federal Government by 15 October 2008.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.