The government will do all it can without the support of the Greens to deliver on housing supply and affordability, Treasurer Jim Chalmers says.
Dr Chalmers will meet state and territory treasurers on Friday to discuss work on the national housing accord – a landmark agreement to address supply and affordability.
The accord aims to deliver one million homes across five years from 2024.
The treasurers’ meeting comes after the Greens and the Coalition teamed up in the Senate to defer debate on the government’s $10 billion Housing Australia Future Fund legislation.
The Greens want a national rent freeze and better-directed funding for social and affordable housing.
Dr Chalmers said beyond the future fund, the government was rolling out the biggest increase in rent assistance in three decades and tax breaks for build-to-rent properties.
“We’ve got a whole suite of policies, including tomorrow I’ll be convening the state and territory treasurers to advance our housing accord,” he said on Thursday.
“[We want to] make sure we’re all working together to get the funding right, to get the zoning and planning right, to work with industry to build more homes.
“We would prefer the support of the Greens in order to do that but in the absence of that support, with all of their political posturing and product differentiation, we will do what we can without them.”
Meanwhile, data from property firm Domain suggests house prices in Sydney, Adelaide and Perth will break records by the end of the next financial year.
After leading the 2022 downturn brought on by the Reserve Bank’s aggressive interest rate hiking cycle, Sydney is set to stage the strongest rebound of the capital cities.
House prices in the harbour city are forecast to grow by 6-9 per cent.
If that growth eventuates in an already rebounding market, it will reverse the 9.6 per cent peak-to-trough fall in Sydney house prices.
Adelaide dodged a downturn last year and could end up avoiding a serious downswing.
Forecasts have house prices lifting by 2-5 per cent in the next 12 months.
Perth house prices are also anticipated to reach record highs by the end of the 2023/24 financial year if Domain’s predicted 1-3 per cent growth comes to fruition.
Unit and house price growth is expected across the combined capitals and a more modest lift in the regions across the 12 months.
Domain chief of research and economics Nicola Powell said population pressures were butting up against abnormally low levels of listings to drive up prices.
Temporary and permanent migration has lifted exponentially since Australia reopened its borders in late 2021.
“Of course, unlike natural population growth, those arriving from overseas aren’t already housed,” Dr Powell said.
She said almost 130,000 extra dwellings would be needed in the next financial year to house the new arrivals.
Sluggish home building will also keep supply constrained and likely maintain pressure on home prices.
“While prices are expected to rise, affordability will contain the pace of growth as the likes of rapidly rising interest rates and ongoing mortgage serviceability challenges continue to play out in a complex and dynamic market,” Dr Powell said.
– AAP
