19 October 2010
The Reserve Bank has today confirmed that renters are in for a tougher time, according to the Urban Taskforce. The minutes of this months monetary policy meeting of the Reserve Bank Board, released today, say that there were some signs that the rental market was tightening again, with vacancy rates in some states declining from levels that were already quite low.
The tightness in the rental market was likely to persist given the ongoing strong population growth and the decline in housing approvals this year, and could be expected to feed into increases in rents, the banks minutes say.
According to the bank approvals for construction of apartments remained at low levels in most states, with Victoria a clear exception.
The Taskforces chief executive, Aaron Gadiel, said the Reserve Bank has made it crystal clear.
The only way to ease the burden on renters is to get the supply of new homes back on track, he said.
This cant happen without lower development levies, a more sensible planning system and greater investment by federal, state and local governments in urban infrastructure.
Its no accident that the state with the best record on these three fronts Victoria is has been singled out by the Reserve bank for special mention.
“Victoria is experiencing an impressive level of new home construction, while NSW and Queensland trail behind.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.