The regulatory burden placed on developers is reducing the supply of affordable housing, CENTURY 21 has claimed.
“Red and green tape is stifling developments across many parts of Australia, which is reducing supply and making it more difficult for first home buyers to access affordable housing,” said Charles Tarbey, chairman and owner of CENTURY 21 Australasia.
“While regulation is necessary, it must be reasonable and balance different interests. First home buyers will continue to be at a disadvantage if this regulatory burden is not examined and reduced by the relevant legislative bodies.”
RP Data-Rismark’s recently released Hedonic Home Value Index saw home values finish the 2013 calendar year 9.8 per cent higher, the largest calendar year increase in values since 2009. CENTURY 21 also pointed to the Housing Industry Association’s (HIA) analysis of data from the Australian Bureau of Statistics (ABS), which revealed that to house Australia’s forecast population of 29 million people in 2030, a considerably higher average build rate would be required than the historical average of the past 20 years.
According to the HIA, there has been no commensurate boost to the supply of new housing in line with these demographic changes and it is time for policymakers to acknowledge the imminent policy challenge this poses.
“Sydney has been in the grips of a housing shortage for many years already, and these recent figures clearly show that legislation simply must bend in order to address this,” said CENTURY 21 Synergy Dulwich Hill franchise owner Angelo Lofitis.
“What we need is less red tape and more government initiatives that encourage new development rather than hinder it.”