- Vacancies are at an all time low compared to capital cities
- By 2060 five million more citizens will choose to live outside capital cities
- The need for additional housing, improved transport and land-use planning are paramount to easing the burden of a starved market, says REIA President
The Real Estate Institute of Australia (REIA) has called on governments to urgently address the chronic shortage of housing stock in regional Australia.
Vacancies are at an all time low compared to capital cities, with Commonwealth Bank (CBA) data showing an 11% increase in Australians making the regional move.
Earlier this year, REIA President Adrian Kelly said moving “is a double edged sword in that regional towns need new residents who spend money which generalates employment, but this adds to the supply issues currently being experienced.”
Just recently, Mr Kelly said, “the vacancy rate for the capital cities was down to 3.1% as at June this year of this year with regionals closer to 1.0%.
“There has been a lack of coordinated policy for both city and regional markets.”
The Future
Research by CSIRO suggests that by 2060, density of major cities will increase by 60-88% and be based around hubs.
Mr Kelly said, “by 2060 five million more citizens will choose to live outside capital cities leading to the creation of a dozen or so satellite cities.
“(Satellite cities) will be located roughly two hours from the capital cities so the need for additional housing, improved transport and land-use planning are paramount to easing the burden of a starved market.”
Adrian Kelly
New South Wales
In New South Wales, the state government announced a regional housing taskforce which proposed unlocking state government-owned landholdings, incentives, zoning more land residential, and creating more social and affordable housing.
The government budget this year includes $852.5 million capital expenditure to deliver social and affordable housing and capital upgrades across NSW.
Expecting to deliver 1,000 new land lots for sale to build private homes, the government hopes to accelerate housing estate redevelopments.
Victoria
The government in Victoria is asking any regional developers and landowners in Victoria to put forward any developments or vacant land that could be turned into social or affordable housing.
Minister for Housing Richard Wynne said, “we are calling on (them) to put their hand up to help make a contribution towards the future of their community, create jobs and put a roof over heads of Victorians who need it the most.”
Investing $80 million to address the shortage in Victoria, eighteen regional areas will be given priority.
Queensland
The state announced the regional home building boost grant, giving home owners on regional Queensland $5,000 after the purchase or construction of a brand-new house, unit or townhouse valued at less than $750,000.
Treasurer and Minister for Investment Cameron Dick said the QLD government has paid $162 million to more than 11,400 Queensland applicants to boost housing supply and make more jobs.
