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Increased housing supply not to fix Sydney affordability crisis: Aussie study
From:Xinhua  |  2017-11-20 09:01

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SYDNEY, Nov. 20 (Xinhua) -- Building more houses in the Australian city of Sydney will not be enough to alleviate the city's affordability crisis, a stud has found.

An analysis of the Sydney housing market by Australian National University (ANU) academics Cukkoo Joseph and Ben Phillips found that housing prices in the city had soared despite a long-term oversupply in many suburbs.

The report, released on Monday, contradicted claims by New South Wales (NSW) Premier Gladys Berejiklian and other politicians that ramping up the housing supply would improve affordability.

Phillips and Joseph said that while increasing supply would have "some benefits" it was "unlikely in isolation to create affordable housing."

"This inference is all the more likely given the time taken to complete new dwellings and that inevitably in the short to medium term new supply is only likely to be a small share of the total dwelling stock," the report said.

Inner-Sydney was found to have a surplus of 5900 dwellings relative to population growth since 2001, the most significant surplus of the 328 regions in Australia studied by the pair.

In total, Australia has built 164,000 more dwellings than required to deal with population growth since 2001.

"We haven't found a particularly strong relationship between the balance of supply and demand and house price growth," Phillips told the Australian Broadcasting Corporation (ABC) on Monday.

"We did find a very small correlation, but it was less than 10 percent, so what that tells us is that there is perhaps some impact from housing supply but, by and large, what's driving house prices in Australia, particularly in our capital cities, is a whole range of other factors."

Data released in October revealed that there now isn't a single Sydney suburb with a median house price lower than 500,000 Australian dollars (377,000 U.S. dollars). In 2012 there were 159 suburbs where the median house price was below that benchmark.