New housing supply data confirm a concerning trend
New ABS housing approvals data continues to show a decline in housing approvals, meaning that home buyers, particularly in Sydney, risk higher prices as supply separates from demand, according to the Property Council of Australia.
National total dwelling approvals have decreased in December 2016 by 1.2 per cent in seasonal terms – and fallen 11.4 per cent in the past 12 months.
“We have now seen seven consecutive months of falls in dwelling approvals. The peak of the housing construction cycle has passed and this has implications for jobs, as well as for house prices”, said Glenn Byres, Chief of Policy and Housing for the Property Council of Australia.
“If we keep seeing a gap emerge between supply and demand, it will be homebuyers that suffer through higher prices from the failure of governments and planning systems to respond.
“What we are seeing is a great deal of talk about policies to improve housing supply, but that talk is yet to turn to action.
“NSW - the nation’s largest state and epicentre of the affordability debate - has taken a hit and fallen 13.2 per cent in the past month and 25.2 per cent in the last year. This contrasts with a 12.1 per cent increase for the year in Victoria.
“NSW is paying the price for complacency. It is raising record sums from stamp duty and is failing to fix the nation’s worst planning system. If the new premier is to keep her word on housing affordability, she will need to drive significant taxation and legislative reform.
“A backdown on local government reform by Premier Berejiklian and Treasurer Perrottet will make the task even harder.”
Media contact: Paul Ritchie | E firstname.lastname@example.org