Cutting red tape will improve housing affordability

TREASURER Scott Morrison said state governments need to remove red tape to increase the housing supply, which will boost affordability.

In a speech to the Urban Development Institute of Australia, the treasurer said housing is “getting away” from ordinary Australians.

“The proportion of home loans that are being provided to first home buyers was 13.4% in August 2016, well below its long-term average of 19.4%. In aggregate, across the country, a 20% deposit on the nationwide median home loan is more than 100% of annual household disposable income. This is slightly above the decade average, but well above the 60% levels that were the norm prior to 2000.

“Between June 2010 and June 2015, the time taken for a dual income couple to save for a 20% deposit in Sydney increased from 5.8 years to 7.9 years. In Melbourne it increased from 5.3 years to 5.8 years. However, outside NSW and Victoria, the change in the number of years to save for a deposit actually fell. So once again, the impacts are not even across the country. Highlighting the risk that tailoring a solution to deal with house prices in Sydney and Melbourne can have the reverse effect on markets in other areas.

“All of this can seem very unfair. The market is getting away from people. No matter how hard they work or save or even earn, they are finding it harder and harder to get into the market,” the treasurer said.

Morrison said housing in Australia, especially in Sydney, Melbourne and Brisbane, is expensive and increasingly unaffordable, but that does not mean it is over-valued.

“Improving housing affordability right across the housing spectrum must therefore be a key policy goal for governments at all levels, including the Commonwealth,”

Morrison said state governments can do a great deal to improve planning processes.

“My Department has heard from developers about increasing development times, with one noting that it took 12 years for a recent project on the outskirts of Melbourne to go from the acquisition of vacant land to a new suburb. This was how long it took for the land to be rezoned and for the developer to meet the onerous hurdles required in construction,” he added.

“The government will … be discussing with the states the potential to remove residential land use planning regulations that unnecessarily impede housing supply and are not in the broader public interest.

“This will be the strong focus of my discussions at the next Council on Federal Financial Relations that I will convene in early December,” Morrison said.

Meanwhile the National Australia Bank has issued a list of high-risk suburbs.

The 600 suburbs list categories the high-risk areas in Group A and Group B. In suburbs belonging to Group A, borrowers are required to stump up a 30% deposit and 20% in Group B.

 

Group A: Borrowers need 30% deposit

6390 Boddington WA

6429 Coolgardie WA

6436 Menzie, Ularring WA

6437 Leinster, Sir Samuel WA

6438 Leonora, Lake Darlot WA

6440 Bandya, Beadell, Cosmo Newbery, Lake Wells, Laverton, Neale WA

6442 Kambalda East & West, WA

6642 Meekatharra WA

6646 Wiluna, Lake Carnegie, Little Sandy Desert WA

6710 Cane, Onslow, Peedamulla, Talandji, Yannarie WA

6713 Dampier WA

6714 Antonymyre, Balla Balla, Banynton, Bulgarra, Burrup, Cleaverville, Cooya Pooya, Gap Ridge, Gnoorea, Karratha, Karratha Industrial Estate, Maitland, Mardie, Millars Well, Mulataga, Nickol, Pegs Creek, Sherlock, Stove Hill WA

6716 Pannawonica WA

6718 Roebourne, Whim Creek WA

6720 Cossack, Point Samson, Wickham WA

6721 Port Hedland WA

6725 Eighty Mile Beach WA

6728 St George Ranges WA

6751 Tom Price WA

6753 Newman WA

6754 Paraburdoo WA

6758 Nullagine WA

6760 Marble Bar WA

4413 Auburn QLD

4415 Columboola QLD

4420 Baroondah QLD

4455 Wycombe QLD

4521 Mount Pleasant QLD

4581 Eurong, Fraser Island, Inskip, Rainbow Beach QLD

4660 Apple Tree Creek QLD

4674 Oyster Creek QLD

4678 Bororen, Foreshores, Rodds Bay, Turkey Beach QLD

4680 Gladstone QLD

4715 Mount Murchison QLD

4717 Blackwater QLD

4720 Emerald, Yammala QLD

4737 Sarina QLD

4738 Ilbilbie, Koumala QLD

4740 Beaconsfield QLD

4741 Mount Ossa QLD

4742 Burton, Eaglefield, Elphinstone, Hail Creek, Kemmis, Mount Britton, Nebo, Oxford, Strathfield, Turrawulla, Valkyrie QLD

4743 Suttor, Glenden QLD

4744 Moranbah QLD

4745 Cotherstone, Dysart QLD

4746 May Downs, Middlemount QLD

4800 Conway QLD

4804 Collinsville, Mount Coolon, Mount Wyatt, Newlands, Scottville, Springlands QLD

4805 Bowen QLD

4820 Campaspe QLD

5600 Whyalla, Whyalla Playford SA

5601 Point Lowly SA

5608 Whyalla Norrie, Whyalla Stuart SA

5609 Whyalla Jenkins SA

5725 Olympic Dam, Roxby Downs SA

0885 Alyangula NT

7030 Brighton TAS

7155 Kettering TAS

7467 Queenstown, Lake Margaret

7468 Macquarie Heads, Strahan TAS

7469 Zeehan, Trial Harbour, Renison Bell, Granville Harbour TAS

7470 Rosebery TAS

 

Group B: Borrowers need 20% deposit

2000 Barangaroo, Dawes Point, Haymarket, Millers Point, Sydney, The Rocks NSW

2008 Chippendale, Darlington NSW

2017 Waterloo, Zetland NSW

2019 Banksmeadow, Botany NSW

2037 Forest Lodge, Glebe NSW

2067 Chatswood NSW

2112 Denistone East, Putney, Ryde NSW

2118 Carlingford NSW

2127 Newington, Sydney Olympic Park, Wentworth Point NSW

2140 Homebush NSW

2141 Berala, Lidcombe, Rookwood NSW

2142 Camellia, Clyde, Granville, Holroyd, Rosehill NSW

2144 Auburn NSW

2146 Toongabbie NSW

2150 Harris Park, Parramatta

2153 Balkham Hills, Bella Vista, Winston Hills NSW

2166 Cabramatta, Canley Vale, Canley Heights, Lansvale NSW

2168 Ashcroft, Busby, Cartwright, Green Valley, Heckenberg, Hinchinbrook, Miller, Sadleir

2194 Campsie NSW

2195 Lakemba, Wiley Park NSW

2199 Yagoona NSW

2205 Arncliffe, Turrella, Wolli Creek NSW

2208 Kingsgrove NSW

2209 Beverly Hills, Narwee NSW

2210 Lugarno, Peakhurst, Riverwood NSW

2211 Padstow NSW

2220 Hurstville NSW

2222 Penshurst NSW

2566 Varroville, Bow Bowing, Minto, Raby, St Andrews NSW

2767 Bungarribee, Doonside, Woodcroft NSW

2769 The Ponds NSW

3000 Melbourne VIC

3004 St Kilda Rd VIC

3006 South Bank, South Wharf VIC

3008 Docklands VIC

3067 Abbotsford VIC

4000 Brisbane City, Petrie Terrace, Spring Hill QLD

4006 Bowen Hills, Fortitude Valley, Herston, Newstead QLD

4010 Albion QLD

4032 Chermside QLD

4101 Highgate Hill, South Brisbane, West End QLD

4102 Dutton Park, Woolloongabba QLD

4215 Labrador, Southport QLD

5000 Adelaide SA

5001 Adelaide SA

6000 Perth WA

6003 Highgate, Northbridge WA

6004 East Perth WA

6005 Kings Park, West Perth WA

6100 Burswood, Lathlain, Victoria Park WA

6103 Rivervale WA

800 Darwin NT

Australian Property Journal