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NSW Budget must deliver solutions to housing affordability and availability
1 September 2011
The state’s peak real estate body is calling on the O’Farrell Government to take decisive steps, including introducing additional buyers’ incentives and cutting development costs and red tape.
“The housing affordability and availability crisis gripping NSW is having a significant impact on families, essential workers and first home buyers,” said REINSW President Wayne Stewart.
“Unless we start urgently addressing these issues then we will inevitably see increasing numbers of people leaving NSW, simply because they are priced out of the market.
“The upcoming State Budget needs to recognise the two speed economy and provide solutions for those who are really struggling with cost of living pressures that are preventing them achieving the dream of home ownership.
“REINSW believes a range of measures are needed to stimulate the market and address the housing affordability and availability crisis.
These include:
- introducing additional first home buyers’ benefits for 2011/12
- broadening stamp duty concessions to stimulate the market
- an accelerated program of land release for new residential development
- cutting development costs for residential builders over 2011/12
“The continuing deterioration in housing affordability is the result of the state's unfair taxation policies, including one of the highest levels of stamp duty in the nation, as well as a raft of other imposts.
“Government’s dependency on property taxation has created many of the problems we now face. They need to understand that pressure could now end up killing the goose that laid the golden egg.
“Further, the current impact of domestic issues such as housing affordability and availability also needs to be considered within the broader context of the global economy with disturbing signs of a second financial crisis on the horizon.
“An invigorated real estate market was one of the strong defences for the Australian economy against the impact of the 2008 global financial crisis.
“Those lessons should not be forgotten,” said Mr Stewart.
Please direct media enquiries to Julian Brophy on 0408 276 749.
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