The NSW Government needs to incentivise landlords
- Written by Tim McKibbin
For a market that dominates headlines as much as real estate, it is deflating to contemplate the lack of real action to deliver meaningful benefits to consumers.
The national cabinet meeting was focused on housing. A higher supply target has been agreed. It can’t come soon enough.
The Greens appear to be persisting with the rent freeze nonsense despite the obvious counterproductive consequences it will have on rental supply and affordability, with a heavy weight of clear international evidence proving the point.
Holding up a multi-billion dollar investment in housing supply for those in need by insisting on a measure known to make things worse for renters is a disgraceful position to take.
Thankfully the national cabinet recognised this by ruling rent freezes out.
All the while, the performance of the real estate market remains largely unchanged.
Demand significantly outweighs supply which is keeping prices steady. At around the 70% mark, clearance rates remain extremely strong, underpinning vendor confidence.
The mild increase in listings in recent weeks is providing a little extra choice for buyers but it remains the case that in New South Wales, the gap between the ‘haves’ and ‘have nots’ is widening.
Many people who would like to consider themselves in the market to buy simply don’t have the means with which to compete.
REINSW data shows that rental vacancy is tightening again, which will maintain upward pressure on rents and provide no relief for tenants.
The NSW Government needs to focus its immediate attention on supply by incentivising landlords rather than driving investors away from the residential rental market, which is having the expected disastrous consequences for tenants.
