Sydneys housing ranked as the second most unaffordable in the world

27 January 2010

Demographia Internationals annual Housing Affordability Survey of 272 markets in six countries has rated Sydney as one of the least affordable places to buy a home.

The Urban Taskforce chief executive, Aaron Gadiel, said that Sydney was ranked as the second most expensive housing market in the word following Vancouver.


Sydney is not only Australias most expensive housing market its also one of the worlds most expensive places to own a home, Mr Gadiel said.


Sydneys lack of affordability is a symptom of fundamental problems in the supply of new housing.


Sydneys skyrocketing home prices and high rents are the inevitable result of low rates of housing construction.


Mr Gadiel said that NSW is producing less than half the new homes, per capita, than Victoria or Queensland.


The rate of new home production, per head of population, has halved in the last five years, he said.


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.


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 making 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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