Housing undersupply must be tackled: Sydney median house price hits $600,000

04 March 2010

News that Sydney’s median house price is now only a hairs breadth from $600,000 illustrates how serious the housing supply situation has become, according to the Urban Taskforce.

The Taskforces chief executive, Aaron Gadiel, said that governments and local councils must take urgent action to kick-start housing development in NSW.


Soon the words ˜housing and ˜affordability will never again be used together in Sydney, Mr Gadiel said.


According to Australian Property Monitors, Sydney’s median house price is now $595,745, nearly double what it was a decade ago.


NSWs current shortfall in housing is approaching 100,000 homes and, on current projections, will be near to 175,000 homes within four years, Mr Gadiel said.


Tragically, recent private sector home approval figures suggest that the situation is getting worse, not better.


The Australian Bureau of Statistics seasonally adjusted figures show the number of private homes approved in NSW fell by 15 per cent from October to January.


Things only look positive when the governments massive public housing program is included but more public housing wont dampen the upward pressure on prices in the mainstream housing market, Mr Gadiel said.


Mr Gadiel said that 1,400 new private sector homes were approved in NSW in January 2010.


This is the second worst January home approval figure for NSW in the ABS records going back to 1984, he said.


We need urgent steps to re-build confidence in NSW housing development, Mr Gadiel said.


This means less red tape, lower development levies and more certainty about planning approvals.


The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.


For every $1 million in construction expenditure, 27 jobs are created throughout the broader economy.


The construction activity made possible by property developers contributes $78 billion to the national economy each year and creates 849,000 direct jobs.



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