25 January 2011
Australias sharpest residential rent increases were in Sydney and Darwin in 2010, according to the Australian Bureau of Statistics figures released today. The Urban Taskforces chief executive, Aaron Gadiel said that the strongest capital city rent increases were in Darwin (6 per cent), Sydney (5 per cent), Canberra (4.8 per cent) and Adelaide (4.4 per cent).
Cities with lower than the average rent increases were Melbourne (3.8 per cent), Hobart (3.6 per cent), Perth (3.3 per cent) and Brisbane (2.9 per cent).
The weighted average increase for the eight capital cities was 4.2 per cent, while inflation generally rose 2.7 per cent through the year.
Sharp rent increases are a classic sign of housing shortages, Mr Gadiel said.
Its clear that the greatest disconnect between the needs of households and the supply of homes is in Sydney, Darwin and Canberra.
In the December quarter, Sydney also had the second highest percentage increase, following Canberra.
Unfortunately, the first victims of any housing shortfall are renters, Mr Gadiel said.
This part of our community includes some of our most vulnerable citizens as well as young single and families saving up for a home of their own.
Yet they have to bear the burden of a national housing shortfall that is projected to grow to 308,000 homes within four years.
The Urban Taskforces chief executive, Aaron Gadiel, said that a rising share of the population is being priced out of the housing market.
Mr Gadiel said the housing shortage was a direct consequence of Australias dilapidated town planning laws.
Its not surprising that Sydney has seen the strongest increases in rents, because NSW is widely regarded as having the worst planning system across the nation, he said.
The planning systems sweeping prohibitions and restrictions, together with inefficient infrastructure charges, have crippled Australias housing supply.
Mr Gadiel said that there was a shortage of detached housing in outer suburbs, as well as apartments in the inner suburbs of major cities.
Generally speaking, local councils are dominated by not-in-my-backyard (NIMBY) agendas, he said.
Many councils will actively undermine efforts to provide compact pedestrian friendly communities around good transport links.
In outer suburban areas, a reluctance by all levels of government to invest in urban infrastructure has been a real blockage.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
