Media Release
11 March 2009
HOUSING UNDERSUPPLY DEMANDS POLICY RESPONSE
The release of the Commonwealth Government’s National Housing Supply Council State of
Supply Report adds weight to the case for removing obstacles to building activity, Master
Builders Australia Chief Executive Officer Wilhelm Harnisch said today.
Mr Harnisch welcomed the Report as a useful initiative of the Housing Minister Tanya
Plibersek which provides valuable information to the building industry and policy makers.
The State of Supply Report confirms the analysis by Master Builders Australia that a lack of
building has led to a massive undersupply of housing. The Report estimates an undersupply
of housing of 85,000 in 2008 growing to 203,000 by 2013 and 431,000 by 2028.
“The large and growing undersupply demonstrates the potential for housing to play a key
role in stimulating the economy if obstacles to building activity can be removed,” said Mr
Harnisch.
“Reducing taxes such as stamp duties and developer charges, speeding up development
applications, and increasing the supply of land would all remove current barriers to building
activity.”
Master Builders Australia’s views on removing impediments received support from the
Council’s Report, which concluded that “measures to increase land supply and reduce the
cost of urban infrastructure to homebuyers would likely stimulate an increase in production
and a reduction in the price of new housing.”
Master Builders Australia also strongly endorsed the Council’s view that the government
needs to consider “the incidence and impact of taxation on land and housing,” and that the
“infrastructure provision and charging regime is ‘ripe for review’.”
“In the current economic environment, early action to remove the barriers to building activity
can not only stimulate the building industry, but help to head off a destabilising bust-boom-
bust cycle,” said Mr Harnisch.
Contact: David Alexander, 0418 210 601
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