Federal Minister dismisses Sydney’s housing affordability crisis

By |
At a joint press conference in central Sydney last week, Federal Shadow Treasurer Chris Bowen and NSW Labor leader Luke Foley attacked negative gearing. They also acknowledged that Sydney (where the median house price is now $1.1m) had a severe housing affordability crisis.

But hours earlier, across town at Homebush, Paul Fletcher, the Federal Minister for Urban Infrastructure, was less keen to discuss the city’s housing affordability crisis.

“I suspect the people of Sydney have a lot more things that they're thinking about on a daily basis than that," Fletcher said.

According to statistical data released by the Labor Party, the number of rental properties in New South Wales that have been snapped up by investors has grown by 61% since 2013. Of these acquisitions, more than half were in Sydney.

Labor obtained the statistical data using freedom of information laws.

“Australia has the most generous tax concessions for property investment in the world,” Bowen said. “We also have, despite [NSW Premier Gladys Berejiklian’s] claims to the contrary, a housing affordability crisis.”

Figures from the Office of State Review show that the number of properties in Sydney purchased specifically to rent rose from 1,660 per month in 2013 to 2,670 in 2016.

In contrast, the number of first-home buyers in NSW has been on the decline. Since 2011, the percentage of first-home buyers entering the market in NSW has fallen from 18% to a mere 8%.

Negative gearing is a major source of policy dispute in Canberra, with the Turnbull government ruling out changes to the investment property tax break.

Related stories:
Australia Has The Third Most Expensive Housing Market In The World
REINSW President Calls For Stamp Duty Reform


Do you have more than $200k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : campsie , lalor park , whyalla , emerald , redcliffe

go back

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here