APRA has today responded to rising housing prices by increasing the “interest rate buffer”, effectively restricting the supply of money to be made available to new home buyers.
This has come about as a result of the housing supply and housing affordability crisis. APRA really had little choice.
A lack of housing approvals in NSW, particularly new apartments, has been significant in driving up housing process.
All property industry peaks agree that housing supply is well below demand and this is driving up housing prices.
Today’s move by APRA will have a major impact on new home buyers. This will effectively lock many who have struggled to buy a home, out of the housing market. The effect will be further inter-generational inequity, with millennials bearing the burden of slow and restrictive planning approvals.
Urban Taskforce has called for urgent change to the planning system to provide an immediate fast track process specifically targeting new housing.
With changes to the leadership of the NSW Government, this is the time for some targeted reform. It is also an opportunity to ditch policy changes that will have a negative impact on housing prices and housing supply.
This is a wake-up call for planners who have slowed up on approvals. It’s time to reform the NSW planning system.
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