Real estate in Sydney: Supply solutions
Housing supply is considered by many to be one of the primary determinants of affordability. With population growth outstripping demand in many areas, real estate in Australia is seeing a growing issue around the prices of apartments and houses for sale. This is especially the case in hot-ticket areas such as Melbourne and Sydney.
However, adding more supply to the market isn’t as simple as cranking up activity to meet demand levels. There are several factors that need to be addressed in order to ensure a more steady stream of land and property becoming available. Those in rental properties aren’t immune to the affordability fracas either. As the cost of holding apartments or houses increases, landlords will be forced to up the ante.
Where the bottlenecks occur
According to the Housing Industry Association (HIA), the issues around housing supply and affordability are something we should all be discussing.
“Shelter is a basic human requirement, and access to affordable housing underpins our capacity to prosper and contribute to the community and economy more broadly,” said Graham Wolfe, chief executive of industry policy and media for the HIA.
“So it is appropriate that we are talking about how Australia increases the supply of housing to keep pace with the requirements of our growing and ageing population.”
Mr Wolfe went on to note that there are several areas that need addressing before supply and demand can be expected to meet at some sort of equilibrium. He mentioned increasing land supply, decreasing excessive taxes on construction and housing and improving planning systems. Infrastructure also featured in the list, highlighting the relationship between community development and residential construction opportunities.
In Sydney, some of these areas are being addressed, with the Department of Planning and Environment announcing the rollout of an Electronic Housing Code to new areas, which will save residents both time and money. According to the department, more than 80 councils across the state have access to the code, enabling quicker applications from just about anywhere with an internet connection.
“Home owners, builders, architects and other industry professionals are taking advantage of this tool all over NSW and it’s great that Richmond Valley Council is now on board,” said a department spokesperson.
Other areas to recently receive access include Forbes, Deniliquin, Cowra and Conargo. While progress is being made, it’s important that governments at all levels continue to address the factors that contribute to housing affordability.