Domain chief executive Jason Pellegrino stated there had existed an undersupply of smaller land plots in NSW, and that approval speed had been slow.

The simplest way to resolve the issues is to enhance the velocity in the marketplace so that the right individuals can be in the right home at the right time of their life, and can relocate to those properties more frequently, he informed The Australian Financial Review Property Summit.

That is the component that will impact affordability, as people are in the wrong place.

Stockland CEO Tarun Gupta stated solutions are attributed to building or making properties more accesible, which would call for private and public sector co-operation.

Segments of people need special support, and we must provide for that, but much of the free market must contend with economics 101, demand matching supply, Gupta said.

Aside from availability of land, he says one must consider the kind of land, the approvals and controls on size, scale and location, and all of these elements.

Gupta asserted an undersupply in the apartment sector was on the horizon due to planning and approval delays and supply chain bottlenecks.

Apartments now providing sound value and are worth half the price of new homes in the majority of jurisdictions, but we’re bound to experience in the next few years, the lowest supply of new apartments, he stated, citing planning controls and market conditions.

So we see this potential price issue possibly in the apartments market, but if we resolve these bottlenecks, we solve these issues, he said.

The housing market has escalated to a $9 trillion asset class, but it has become tougher to infiltrate, with Sydney home buyers now needing a record 16.8 years to save a deposit to purchase a home as prices soared to 12.5 times the typical household income. Nationally, it now requires 10.8 years to save a deposit as prices escalted 8.1 times income, the ANZ CoreLogic Housing Affordability report demonstrates.

The barrier to entry into the housing market is not a matter of the interest rate, but the interest rate on the mortgage. It’s attaining the mortgage and saving for that mortgage, Mirvac CEO Susan Lloyd-Hurwitz stated.

She says we must pose the question about what variety of housing we’re supplying for folks in this nation, and how they get it.

Lloyd-Hurwitz said supplying new types of housing like build-to-rent could be a choice.

More people in Australia are renting, and they are growing faster than the populace because they are priced out of the market, she said.

There’s an inability to access the market or infiltrate the market for some time, and they will. In the long run, they need a secure home in a good community.

CoreLogic chief executive Lisa Claes stated that with the federal election coming soon, government intervention to make affordability feasibility unlikely. She says that the answer does not lie in government intervention.

 

Source: afr.com

Image source: istockphoto.com