New South Wales Premier Mike Baird believes policy makers at all levels of government should take heed of what Reserve Bank of Australia (RBA) governor Glenn Stevens has to say about the current state of the property market.
Stevens described the Sydney market as “crazy” on Wednesday and Baird believes given the amount of time the RBA spends studying house prices, talk like that from its head should be taken seriously.
"We need to listen to the Reserve Bank Governor," Baird said in the Australian Financial Review.
"The last thing that you want is a boom bust cycle," he said.
The past three years has seen Sydney house prices rise by 39%, with historically low interest rates and supply issues among the reasons most are pointing to for the that rise.
The Housing Industry Association (HIA) earlier this week called for the Federal Government to take the lead on the issue of supply and appoint a Minister for Housing.
“Housing supply is indeed a national issue and requires federal leadership,” HIA policy chief executive Graham Wolfe said.
“But what is missing from the national debate is a Federal Minister for Housing, to lead the conversation and oversee a strategy for policy reform.”
Wolfe said the HIA wants land supply to be increased, taxes on new houses reduced and planning and infrastructure policies reviewed.
“There are measures that can be introduced to begin the process of relieving affordability pressures; national leadership is required so that can start now.”
While not at a national level, some of those changes may already be occurring; with the NSW Government reviewing the state’s planning laws.
The AFR has reported that NSW Planning Minister Rob Stokes is considering scrapping 16 state planning policies and returning those powers to local government.
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