Login
iscover
New ABS data showing the slowest rate of house price growth in three years is evidence of the benefits of strong supply boosting competition in the market, according to the Property Council of Australia.
The data on house prices showed a 3.5 per cent increase over 12 months and 1.5 per cent increase for the quarter.
“We have had the strongest period of supply for close to a decade and that’s feeding into a moderation of house price growth,” the council’s chief of policy and housing, Glenn Byres said.
“It makes clear one thing, above all else, can work to tilt the balance back in favour of homebuyers, and that is a sustained performance in supply to meet demand.”
However, Mr Byres said the news carried a caveat as there were signals from other official data on approvals and construction that the peak had passed on new stock coming into the market.
“Without a contribution on the supply side over the long haul that meets the pace of growth in our cities, we will struggle to close the affordability gap,” he said.
Mr Byres said a new deal is needed between the federal and state governments to address housing markets and planning systems.
“Meaningful policy reforms that deliver real improvements in housing supply will benefit home buyers more than playing with negative gearing, which even its advocates say will only change prices by 0.49 per cent.”
