DISCOMFORT FELT BY ALL SYDNEYSIDERS 

Outgoing RBA Governor Glenn Steven’s comments today that rising Sydney house prices give him some ‘discomfort’ reflects the feeling thousands of Sydneysiders have every Saturday when they head out to try and buy a new home.

Property Council of Australia NSW Executive Director Jane Fitzgerald said the housing affordability crisis in Sydney needed a concentrated policy response from the NSW Government.

“Sydneysiders are borrowing and want to buy houses but the lack of supply is contributing to the housing affordability crisis – it’s simple supply and demand.”

“The shortfall of houses in Sydney will hit 100,000 for the first time next year; with population growth and high demand, housing prices are sky high.”

“In this environment it makes no sense that the Baird government has introduced a new tax on housing via new foreign investment levies on top of existing stamp duty and land tax.

“In the NSW housing market foreign capital underpins between 15 and 25 per cent of housing construction.  As this new tax starts to bite it will stop many houses ever being built and the ones that are will be more expensive.”

“While there continues to be a shortfall in housing supply and additional investment is discouraged by higher state taxes, the next Governor is likely to feel discomfort as well.”

Media contact:  William Power| M 0429 210 982 |   E wpower@propertycouncil.com.au