Download Ross Greenwood’s interview with John Symond on 2GB on 22/09/09 where they discuss housing affordability and the possibility of a housing boom.
Download the Interview (MP3, 8MB)
Aussie founder and executive chairman John Symond discussed the Reserve Bank’s warnings that the country may experience a housing boom due to a shortage of properties. He told 2GB’s Ross Greenwood that all levels of government have created this situation.
“I think governments at Federal, State and Local levels have been negligent in granting land releases at affordable price costs,” he said. “They have been loading service costs to the developer who passes on about $150,000 in service costs on to the purchase price. The government really have caused this affordability and housing crisis. The land’s not being released quickly enough.”
Mr Symond said it the lack of housing and the shortage of land affects the average homebuyer as it puts pressure on prices.
“There will be pressure on prices over the next few years,” he said. “They won’t drop, but I don’t think they will go through the roof. We’ve had a slight reprieve with these low interest rates but they will be back before we know it.”