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Home price crunch

ACUTE land supply shortages, stamp duty, fees, taxes charge and the GST have sent home prices out of the reach for many first home buyers, according to the Housing Industry Association.

In May 2003 first home buyers made up 14.4 per cent of the total number of loans, compared with July 2001 figures where they comprised 25.8 per cent of first home buyers’ loans.

HIA executive director John Dastlik said that with new housing contributing to nearly 40 per cent of economic growth over the past year, the fall away in first home buyer numbers coupled with indirect taxes cast a shadow over future housing activity and economic growth.

Real Estate Institute of Australia president John Hill has supported the call for an inquiry into housing costs. Mr Hill said a 300 per cent increase in taxes and charges on new housing and land developments over the past 10 years was something that needed to be examined

“Whilst the REIA believe that governments are bound to recover some of the costs from developers as a contribution to the provision of infrastructure for community benefit, an open and transparent inquiry is welcomed as a measure to assist in improving the affordability of new homes,” he said.

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