News: Queensland on brink of affordability crisis

UDIA Queensland this week released its report ’An industry inquiry into affordable home ownership in Queensland’ and launched its 7 point Housing Affordability Restoration Plan.

At a public launch in Brisbane, UDIA Queensland President Brent Hailey called on all levels of Government to urgently address an impending housing affordability crisis across the State.

Key findings of the UDIA report point to a dramatic decline in housing affordability from 2000 to 2005 as a result of alarming increases in Government taxes and charges and the cost of land.  The report highlights that there is now a $100,000 AUD gap between household earnings and the cost of an average home.

The UDIA was joined by other key industry bodies, the REIQ, HIA, PCA and QMBA in collectively calling for action to prevent affordability declining even further.

At the top of the UDIA’s proposed strategies for addressing the problems, is the formation of an independent land monitoring authority, responsible for auditing and reporting on available land supplies.

UDIA has also called for an immediate moratorium on further increases to infrastructure charges - which the report says have risen by 400 per cent in five years - and for the current charging system to be urgently reviewed.

UDIA Queensland President Brent Hailey said:  "If we had a minister for housing affordability who looked across the whole spectrum of the issues and brought them all together, rather than a group of individual ministers who look at their own particular portfolios, that would certainly be of benefit."

Last month a report by industry analysts BIS Shrapnel predicted that housing affordability would remain a major constraint on Australian residential property markets for the next two years as they suffer their worst affordability crisis since the 1980s boom.

BIS Shrapnel warned in its 'Residential Property Prospects, 2006 to 2009' report that home owners should expect a further slowing in residential property price growth over the next three years.

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