Are ‘Housing Supply Deals’ the way forward?

By Noemi Pamintuan-Jara 09 November 2021 | 1 minute read

The Federal Government recently proposed 'Housing Supply Deals' that might help reduce housing affordability concerns by making thousands of new residences available in crucial areas of housing need.

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Property Council Chief Executive Ken Morrison has spoken before the inquiry into housing affordability and supply to recommend these “Housing Supply Deals” to “boost state and local government housing supply”.

“As our borders reopen and our population begins to grow again, we will need to unlock new housing supply if we are to help support housing affordability outcomes for the community,” he explained.

Mr Morrison weighed in on the Property Council’s recommendations, stating that home affordability in Australia cannot be addressed without also addressing supply.

He said: “The Federal Government can help smash supply bottlenecks by striking Housing Supply Deals with state, territory and local governments. Under these deals, federal and state infrastructure funding can be added to the industry’s own contributions to clear out the infrastructure and planning logjams to deliver the housing the community needs.”

Mr Morrison pointed out that housing affordability is a national issue, thus, the federal government needs to play a stronger role in the solution whilst state and local governments bear the responsibility in its implementation.

He also added that the ‘Housing Supply Deals’ may help overcome the infrastructure and planning hurdles blocking the delivery of new housing and may help ease housing prices.

As an example, he mentioned how NSW and Queensland are struggling to meet demand for new houses that are affordable to first-time buyers, and, he believes, federal assistance might help break the cycle.

“With net overseas migration recommencing as international borders reopen, this is the right time to undertake some of the bold reforms needed to unlock sections of land in growth corridors of our largest cities and towns,” Mr Morrison stated.

Data presented by the Property Council shows huge supply gaps in key detached housing markets across Australia, and it has argued that state government incentives are needed to avoid an impending apartment supply bottleneck by 2025 in the main capitals.

The Commonwealth should make federal funding support for social and affordable housing conditional on meeting key housing supply targets, according to the Property Council.

Mr Morrison relayed that the housing industry would like the Federal Government to add incentives on supply, zoning, and planning reforms in order to help states meet their housing duties.  

This can be done through the inclusion of metrics in existing arrangements and an expert taskforce should be established to develop a National Competition Policy-style payment plan for states that meet their long-term responsibilities.

In closing, Mr Morrison stressed the key role of the Federal Government in the housing industry:

“As shown through the strong work of NHFIC, the Federal Government does have an influential role to play monitoring and spurring better state and local government support for our long-term national housing supply needs.”



Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.

About the author

Noemi Pamintuan-jara

Noemi Pamintuan-jara

Noemi is a journalist for Smart Property Investment and Real Estate Business. She has extensive experience writing for business, health, and education industries. Noemi is a contributing author of an abstract published by the American Public Health Association, and Best Practices in Emergency Pedagogical Methods in Germany. She shares ownership of the copyright of an instructional video for pharmacists when communicating with deaf patients. She attended De La Salle University where she obtained a double degree in Psychology and Marketing... Read more

Are ‘Housing Supply Deals’ the way forward?
Housing Supply Deals
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