Author: Real Estate Institute of Australia
TheReal Estate Institute of Australia (REIA) is urging the Federal and State Governmentsto improve planning approval times in a bid to address the diminishing housingsupply.
REIAPresident Adrian Kelly said there needs to be a long-term and collaborativeindustry-government plan for housing.
Transactionsare down, with Victoria reducing by 21 per cent over the past five years whileWA saw listings fall by 45 per cent over the past year indicating a chronicshortage of housing.
Thechanges should involve reducing the cost of the development applicationprocess, rezoning reform, improving approval times for developmentapplications, introduction of land release programsand the establishmentof a government-led mechanism for reliable data on housing demand and supply.
Inthe rising market of 2021, this issue continues to be excessively politicisedand has become a conversation of public versus private, State versus Federal,young versus old, wealthy versus poor and civil society versus business groups,Mr Kelly said.
Since2013, REIA has promoted supply as a key way to improve housing affordabilityfor all; and our Getting Real: Strategic Policy Forum on 9 June 2021agreed that this is best addressed through a coordinated and well-fundednational housing plan.
REIAestimates pre-COVID19, the housing shortfall sat at 150,000. NHFIC forecaststhat project completions will fall by 12 per cent by 2022 and that demand willfully rebound by 2023 and the supply crunch will return in force. Budget 2021estimates that net international migration will increase by to 235,000 by 2024-25(FY21-22 -77,000).
Thereis no current government planning process to manage this. Both pre-and-postpandemic, without improved supply planning, it is clear we can expect to seeprices jump as supply does not keep pace.
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