New homes are the key to housing affordability

10 January 2010

The latest predictions of a Sydney housing affordability crunch demonstrate Sydneys clear need for more housing, according to the Urban Taskforce.

Figures from property analyst Residex reveal that Sydneys median house price is on target to hit the $1 million mark by the end of this decade. An estimated 625,000 houses across the metropolitan area would have a value of more than $1 million by 2010.


The Taskforces chief executive, Aaron Gadiel, said that skyrocketing home prices and high rents were the inevitable result of low rates of housing construction.


Mr Gadiel said the states per-capita rate of new housing construction has halved since the Metropolitan Strategy targets were applied.


As a consequence, Sydneysiders are bearing the costs of poor planning.


Rents in outer suburban Sydney have gone up by more than 20 per cent in the last two years.


In the middle ring suburbs, rents have jumped near to 30 per cent.


Sydneys congestion speaks volumes about the lack of pedestrian friendly apartment development around train lines, bus lanes and other transport corridors.


The Government is about to review the Metropolitan Strategy now is the time to put in place ambitious targets that have a chance of meeting Sydneys housing needs.


This will require tough decisions about the future of our city but its a debate that Sydney has to have.


Mr Gadiel said that NSW needed to re-open its doors to private investment in urban renewal and expansion.


We need to see local councils and government taking decisions to approve new development, he said.


Well never get on top of the states housing shortage if it doesnt become easier for developers to build new suburbs on the edge of cities and compact, pedestrian friendly communities in the inner and middle ring suburbs.


The Government also needs to reform local council infrastructure levies which are burdening new developments adding up to $60,000 to the cost of a house and $30,000 to the cost of an apartment.


The industry desperately needs a more stable investment environment, where we can have confidence that the ability to own and develop land will be respected.


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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