MEDIA RELEASE: While the Real Estate Institute of NSW (REINSW) has tentatively welcomed the abolition of the Greater Cities Commission, given its failure to deliver the homes NSW needs, CEO Tim McKibbin says people struggling to afford a home to buy or rent don’t care which authority is in charge, so long as more supply is built as a matter of urgency.
REINSW CEO Tim McKibbin says that until the NSW Government prioritises “bricks over bureaucracy”, the undersupply and unaffordability of housing will remain the state’s main societal concern.
“People in need of a home don’t much care whether the Greater Cities Commission, Department of Planning or whatever other bureaucratic authority is in charge of delivering more homes. They just want somewhere to live,” Mr McKibbin says.
“If the same effort that has gone into the politics of housing supply was redirected to the actual building of more homes, the scale of the housing catastrophe wouldn’t be so great.
“On a weekly basis we are inundated with announcements of rezonings, revised targets and new responsible authorities. What we aren’t hearing about is the commencement of new projects.
“That’s because new housing feasibility is constrained by an environment of planning headaches, approval delays and tax hurdles,” he says.
Mr McKibbin says if the NSW Department of Planning is to be responsible for delivering higher housing targets, it must start with addressing some basic questions.
“It appears part of the reasoning for the Government’s new approach is to speed up the planning process. It must address why it often takes longer for a developer to get an approval from a consent authority than it takes to actually build a home,” he says.
“Tax reform is another no-brainer. Government talks affordability but acts with tax. Over 40% of the cost a home buyer pays for a new home is Government taxes and charges, incurred at different stages throughout the design, construction and sales process.
“A more appropriate taxation approach which encourages developers to proceed and doesn’t require the tax burden to be passed down the line to consumers would improve project feasibility and buyer affordability.
“So please, no more ‘roundtables’, ‘focus groups’ and ‘Parliamentary Inquiries’. What we need is concrete, bricks, paint, wood and nails, and the appropriate support for the people and businesses who will actually solve the supply problem - developers and builders.
“Until this occurs, it’s all just political speak,” Mr McKibbin says.
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For more information, please contact:
Tim McKibbin | 0415 931 013 | [email protected]
The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offer training and ongoing professional development. For more information, visit reinsw.com.au.