The Canberra Times is reporting that the cost of an average local house had risen from $415,649 to $488,804 over the year, a 17.6 per cent rise. In fact Canberra’s housing affordability problem has soared above the rest of Australia, according to a series of industry reports
This is bad news for Mr Stanhope and his promise to provide affordable housing as $400K is not affordable in my books.
It must also be remembered that Mr Stanhope took over responsibility for the affordability “crisis” from former planning minister Simon Corbell last year and later stripped him of the portfolio altogether which implies a certain underconfidence in Mr Corbell.
A spokesman for Mr Stanhope has said “It is a plan for the next five to 10 years, not five to 10 minutes.”
I counter with the fact that Stanhope will no longer be in office in 10 years, and has not made any improvements to the situation whilst he has been in power.
And true to form, Mr Stanhope has shifted the blame solely on the Commonwealth government citing changes to superannuation laws for damping rental property investment, with prospective investors putting money into super instead.
He said the biggest impact facing home buyers was the possibility of another interest rate rise. This is a lie. The biggest factor facing home buyers is the cost, which is astronomical.
When will state and local governments realise that, although making land supply scarce is a good way to keep up prices and therefore spin money, that it is hurting home buyers.
I despair for the next generation who will be the first in Australias history not to be able to afford their own house.
And this blame can be placed fairly and squarely on greedy State and local governments.