Midyear state of affairs: A closer look at the country’s markets
With market conditions changing at varying degrees across the country, seven experts from Property Investment Profession...
The gap between housing demand and supply continues to grow across the country, with new research claiming the country could face an undersupply of more than 640,000 by 2030.
According to the National Housing Supply Council's State of Supply Report 2011, the current national demand for housing sits at 214,700 new homes, which will increase by 29,000 properties over the next 12 months.
“The gap between total underlying demand and total supply is estimated to have increased by approximately 28,200 dwellings in the year to June 2010, to a cumulative shortfall of 186,800 dwellings since 2001,” the report said.
“The Council’s central projection suggests that over the five years to 2015, the cumulative demand–supply gap since 2001 is projected to grow by a further 142,000 dwellings to 328,800 dwellings.”
“By 2030, the same projection assumptions produce a cumulative gap of 640,200 dwellings.”
Following the release of the report, the Real Estate Institute of Australia (REIA) is calling immediate action by all levels of governments to address the “ever-widening gap” of housing supply.
"We need to see immediate action by all levels of government,” REIA president Pamela Bennet said.
“The constraints on supply are well known and include land availability, lengthy planning delays, skills shortages, the cost of entering the property market and state government charges.
"An adequate supply of housing is crucial in addressing housing affordability in Australia.”
The Housing Industry Association (HIA) has thrown their weight behind the REIA and called for “significant housing policy reform agenda.”"
The latest National Housing Supply Council report highlights that as a nation, we must embark on a significant housing policy reform agenda, if we are to reinvigorate the residential building sector and keep the great Australian dream of home ownership a reality," HIA chief executive Graham Wolfe said.
"Although all housing indicators point to a weak market, the chronic undersupply problem in Australia continues to grow."
Mr Wolfe said addressing excessive and inefficient taxation, along with land supply, remain high priorities for the housing industry if it is to bridge the housing undersupply gap.
"Taxation, levies and charges on a new house and land package can be in excess of 40% of the purchase price," said Mr Wolfe. "Independent economic modelling shows that the taxes on a new home are often in excess of the price of the land."
"Access to land for development is equally a problem, and it demonstrates that there is a role for all levels of government if we are to tackle the availability and affordability of housing for Australian families."