- House values are up buy 14.5% this year
- Rent values have also risen significantly, too
- Property Council has called for clear strategies to benefit both homebuyers and renters
One pandemic trend has been increased migration from cities to regions, which has pushed up regional prices and constricted supply. In response, the Property Council of Australia has called for action to solve what it has labelled a “regional housing crisis”.
“It’s every Australian’s dream to live in a house of their choosing, in the location they desire with access to amenities and green space,” said Illawarra director of PCA, Michelle Guido.
“But as time goes on, and we are continually pushed out of the market, this has only become increasingly difficult especially and other regional areas where affordability is becoming a challenge.”
Michelle Guido, Property Council of Australia
Back in May, rent values had risen by 9.6% in regional areas – almost triple the 3.3% increase recorded among the capital cities, according to CoreLogic’s Eliza Owen.
In terms of purchasing property, regional house values are up 14.5% this year.
“Housing supply and affordable housing were already critical issues across the state, and especially for our region, but COVID-19 has now created an even greater urgency for policy levers to be quickly and strategically used to ensure future supply of residential housing,” continued Ms Guido.
Ms Guido said it was important to understand the barriers to planning and deliver housing in regional areas to ensure an appropriate delivery model.
“We acknowledge the government’s commitment to pursuing this important issue and the implementation of the NSW Regional Housing Taskforce, but urge the government to take a more holistic approach on housing that looks at both the ‘buyers market’ and ‘rental market’ to set us up for future success,” she added.
Ms Guido argued that population forecasts are conservative and outdated thanks to the significant pandemic-induced exodus from urban to regional areas.
“As populations in regional areas continue to grow and age and at the same time, there is also a real need for planning policies that override local politics and are aimed at the greater good, which would enable the delivery of new forms of housing to meet the changing needs of regional communities and especially our ageing population.”
In conclusion, she has called for clear distinctions between the ‘buyers market’ and ‘rental market’ when considering housing strategies.
“We all deserve the choice and opportunity to either own our own home or have access to renting an affordable home, and this means we need to change the way we look at housing in our communities.
“We need to as a first step make regional housing an absolute priority, and then the rest will follow,” concluded Ms Guido.
