Property Council slams lack of government action on housing supply … – realestate.com.au

Kate McIntyre, Property Journalist
Updated 23 Feb 2023, 9:29am
First published 22 Feb 2023, 2:48pm
Property Council of Australia’s acting NSW executive director Adina Cirson.
A leading figure in the property industry has called on the state government to take a tougher approach towards local councils that don’t meet targets for the delivery of new housing.
The Property Council of Australia acting executive director Adina Cirson said the next NSW government should “red-card” local councils that didn’t deliver “their fair share” of additional housing supply by stepping in to remove planning consent on a case by case basis.
It comes on the heels of Tuesday’s report from HIA that warned of a sharp drop in new home building in 2023, with the number of detached housing slated to begin this year at a decade low.
Home building is set to drop this year. Picture: Nigel Hallett.
HIA chief economist Tim Reardon said nine consecutive interest rate hikes plus supply chain pressures had taken a toll on the construction industry.
MORE: ‘Squeezed for price’ tradies compete as slowdown looms
Good buy: Sydney’s last suburbs with homes below $500k
“Lending for the purchase or construction of a new home had already fallen to its lowest level since 2012 by the end of 2022, and the full impact of last year’s rate increases is still to flow through to households,” Mr Reardon said.
HIA chief economist Tim Reardon.
“This will see the number of detached housing starts fall below 100,000 starts per year for the first time in a decade to just 96,300 in 2024. This is a very rapid slowdown from the 149,000 starts in 2021.”
Ms Cirson described the figures as “alarming” and said more needed to be done by state and local governments.
“We know we must deliver 725,000 new dwellings by 2035 in the Greater Sydney Region alone,” Ms Cirson said.
“We are already 100,000 homes behind on existing targets. We can’t afford to be limping to the finish line on housing supply.”
A housing crisis has meant families across the country are currently homeless.
“Our borders have reopened for immigration and HIA Chief Economist Tim Reardon said the number of new homes was expected to fall by 8.9 per cent this year and another 12 per cent in 2024. By 2025, just 97,820 detached houses are expected to be built.”
She said while many local councils were working hard to meet housing targets across greater Sydney and the regions, more needed to be done to ensure every council pulled its weight.
“Housing targets agreed to as part of state metropolitan/regional plans need to be delivered as part of a minimum standard expected for local councils. Sometimes there are legitimate reasons for under delivery on targets, but every year of anaemic housing growth works to compound our housing affordability crisis,” she said.
She called for the state government to reward councils that were meeting housing targets while red-carding those that underperformed.
“Over the past decade policymakers have been reluctant to intervene in cases where delivery of additional housing has been insufficient,” she said.
“Under a red-card model, the next government should identify underperforming councils, and underperforming precincts, and use the existing tools available in the planning system to realise delivery.”
There are less than 100,000 new homes expected to be built in 2024. Picture: Gettys.
Such tools would include “a range of ‘step in’ options available to government” such as “the creation of State Environment and Planning Policies, Ministerial and Secretary step-in powers.”
She said this could be applied to individual councils or precincts on a case-by-case basis.
“In effect, this would remove planning consent from councils who have chronically underperformed against housing targets and refuse to take part in the growth agenda of the state,” Ms Cirson said.
MORE: Boom is back: West suburbs get rare home price boost
Shock results for distressed home sellers
Sydney auctions heat up as buyers spend big
Buying
Featured
Selling
Disclaimer: The information published in this section is of a general nature only and does not consider your personal objectives, financial situation or particular needs. Where indicated, third parties have written and supplied the content and we are not responsible for it. We make no warranty as to the accuracy, completeness or reliability of the information, nor do we accept any liability or responsibility arising in any way from omissions or errors contained in the content. We do not recommend sponsored lenders or loan products and we cannot introduce you to sponsored lenders. We strongly recommend that you obtain independent advice before you act on the content.
Personalised advertising: We show you more relevant advertising based on your activity. Prefer us not to? Opt Out of personalisation
realestate.com.au is owned and operated by ASX-listed REA Group Ltd (REA:ASX) © REA Group Ltd.

source