Affordability and supply a critical issue

Housing supply and affordability is the most critical issue needing to be tackled by governments, a survey of property industry organisations has found.

Participants in the Property Council of Australia and ANZ research have also responded to economic uncertainty with a predicted slowdown in forward work schedule expectations compared to December.

The latest survey of 771 industry experts rated housing supply and affordability the highest priority for both the Australian and state governments to address.

More than 40 per cent of respondents selected it as a critical issue, representing a 10 per cent jump from the December quarter results and the highest level since this survey question was first asked in 2019.

The record response far overshadowed industry concerns about economic management and energy, environment and emissions.

Property Council chief executive Mike Zorbas said it was unsurprising housing affordability and supply was front of mind for the industry, given a predicted national deficit of 79,300 homes in the next decade.

“Governments can move the housing supply needle by twinning planning reforms with the right investment conditions to support more housing choice for Australians,” he said.

The Federal Government is trying to get a package of housing reforms through parliament which includes a $10 billion housing future fund to finance the construction of 30,000 social and affordable rental properties over five years.

But the proposal faces a challenge from the Greens and crossbenchers who want greater investment ambition to meet existing housing challenges.

Mr Zorbas said the survey indicated the urgent need for parliament to pass the proposed reforms for the government to start getting a handle on the worsening housing crisis.

At a national level, industry confidence was steady and the Confidence Index remained at 113 index points. A score of 100 is considered neutral.

The survey was conducted in early March when questions were being raised around the global banking system and indications of an interest rate pause emerged.

Mr Zorbas said the stability was encouraging.

“While confidence levels remained in positive territory, this survey indicated that the projected workload over the next 12 months is not as robust as it was last year,” he said.

Forward work expectations remained positive in every state and territory over the quarter, with an average of 29.4 across the country. A score of 0 is considered neutral.

Meanwhile, the Council to Homeless Persons has launched a new proposed funding model for the Victorian Government to convert affordable housing, already promised federally, into social dwellings.

Under the plan, which if taken up hopes to inspire other states to follow suit, the gap between rent costs of affordable and social housing would be bridged.

Council CEO Deborah Di Natale called on Victorian Housing Minister Colin Brooks to raise the proposal with federal and state counterparts at the next ministerial council meeting on housing and homelessness.

– BY MAEVE BANNISTER/ AAP