According to one of the nation’s largest property developers the shortage of available housing in Sydney may take up to five years to correct.
According to Mark Steinhart, the chief executive of Stockland the undersupply of housing in the market will take at least half a decade to correct. He said that despite the attempts to correct this problem by releasing land for housing and the construction of new apartment blocks in the nation’s largest city the undersupply of housing still continues in Sydney.
Steinhart recently spoke to a property forum and was quoted in an article on Sourceable.net:
“It will take probably four or five years to address the undersupply in Sydney,” he told a property forum on Wednesday.
“The only way you can do it is through the release of land and through densification, and that’s certainly the approach governments are taking, but it takes time.”
According to the Sourceable.net article these comments from Mr Steinhart come after claims that Australia was in the midst of a property bubble were dismissed by federal Treasurer Joe Hockey.
The treasurer went on to talk of a bubble in the property market was a demonstration of “lazy analysis” and ignored supply conditions.
Sydney house prices have risen more than 24 per cent in the past 2 years according to data from property researchers RP Data, which is high in comparison to the rest of the nation which indicated a 10 per cent annual increase.
The article went on to quote Peter Costello, former treasurer who explained that the property forum in Sydney believed it was state government taxes on the release and transfer of land that were restricting supply and extending the housing shortage. Costello went on to explain:
“What is expensive in Australia is land.
“So we have an increasing demand but we have quite a restrictive supply of land.”
Steinhart went on to explain that while all of the major metropolitan cities in Oz were facing the shortage of housing issues, the problem in Sydney was even bigger. Despite this considerable shortage, Australians should not expect the housing boom to continue. Steinhart said that prices would grow at more moderate rates in the next few years.
Steinhart predicts that prices in Sydney would rise by five per cent annually while Brisbane and Melbourne would experience much more moderate growth, around 4.5 and 3.5 per cent respectively. Those in Perth should expect the prices in their state to remain flat because of the slowdown in mining investment, according to Steinhart.
As the shortage continues over the next five years, the demand is not only going to be high for housing, but also for workers in the housing construction industry.
It has also been reported that the government in certain states and territories will be allowing workers to come in on 457 VISAs to fill the skills gap in certain rural areas. But in order for Aussie workers to take advantage of the array of opportunities opening up in this sector, regardless of the positions they are interested in, they must complete the white card training course.
For more information on the course, click here.