MEDIA RELEASE
3 April 2009 – Despite confirmation that Australian building approvals were up 7.8% in February, mainly due to the private sector apartments, Sydney’s housing shortage crisis continues to worsen, according to Mark Mendel, CEO and founder of national real estate research website www.findinvestmentproperty.com.au. Sydney rents increased on average by 10% across the board during 2008 and with economists predicting a 12% rise for 2009 it would seem there is no let up in sight. Apartments were the worst hit last year, with an average increase of 14.3%, a further indication of the chronic under supply of medium to high density dwellings in the city. Commenting on the figures, Mr Mendel said, “For many renters it is now becoming far more financially viable to take the plunge and purchase their first home but the problem is there are not enough properties to go round. Despite the increase in building approvals nationwide, developers’ hands are tied as they cannot secure funding from the banks for new projects. The current system is clearly failing.” “The Federal Government needs to sit up and take notice before Sydney reaches crisis point. Extending the First Homebuyer Grant for new build properties for at least three more years beyond the current deadline of June 30 would provide an essential boost to the property market and wider economy,” continued Mr Mendel. “There should also be an additional fiscal package for the residential property sector. The current focus on increasing supply of public housing will only have a limited effect on the property market. We need private development to ensure money is pumped back into the sector to guarantee its sustainable growth and ensure no future Government hand outs will be needed,” he added.
