Housing flies under political radar (Ref: Australia Property Investor 11/8/2010)

Housing policies have flown under the radar during a myriad of policy announcements in the lead up to Saturday’s election, says residential property analyst Tim Lawless

Lawless, of RP Data, believes this is a major concern to voters during a time of renewed pubic focus on housing affordability, a growing undersupply of dwellings and rising rental rates.

He points out that the most expensive Australian electorate in which to buy a house is Sydney’s Wentworth – median price of just over $1.6 million – represented by Liberal Malcolm Turnbull on a margin of 3.9 per cent.

At the other end of the spectrum is the safe Labor seat of Lalor – median house price $300,000 – represented by Prime Minister Julia Gillard with a margin of 15.5 per cent.Lawless says the polarity between these electorates demonstrates the enormous gap between housing markets in Australia and the challenges for policy makers in addressing issues such as housing affordability and social housing.“It’s very surprising to see how housing policy initiatives have played what seems to be an insignificant role in the current election campaign,” he said.“Despite housing costs and supply being one of Australia’s most topical and pressing issues, it seems as if both major parties have mutually agreed to place the issue in the ‘too hard basket’.”

Lawless quotes the National Housing Supply Council’s estimate that Australia has almost 180,000 too few homes, rising to a projected 308,000 by 2014. Housing affordability continues to be a pressing issue across many parts of Australia’s cities and regions from both a purchase and rental perspective, he says.

And he describes the Home Savers Accounts and National Rental Affordability Schemes as ‘largely unsuccessful’.

Lawless says funds have been redirected by the Labor Government to boost regional housing, but housing pressures and affordability pains are likely in the outer-metropolitan market.

“Despite outer-metropolitan housing being cheaper than homes located closer to the city – the demographics of these regions often reflect a high proportion of first homebuyers and low-income families – these are also the areas where policies targeting peripheral housing issues, such as land-release strategies, infrastructure development and improved public transport, are sadly not being addressed,” he said.

“It stands to reason that policies aimed at alleviating mortgage pressures and improving liveability in the outer fringes would be a welcome campaign pitch throughout many electorates around Australia.

“Policies targeting a higher level of strategy around land releases and higher density zoning of land closer to the city, further stamp duty concessions for first homebuyers and low-income families, and improved public and private transport options linking the outskirts of major metropolitan markets are prime examples of where our political parties have failed to address the housing issues.”

For more opinions about the absence of property from the Federal Election campaign, read the API blog at www.apimagazine.com.au/blog/2010/08/property-goes-missing-during-federal-campaign