A recent study has indicated that in rode to solve he affordability crisis for homes in Sydney in Australia, it would not merely be enough to building more houses.
In fact, researchers found that despite a long-term oversupply in many suburbs, the house prices in the city had soared. The study which was primarily an analysis of the Sydney housing market, was done by Australian National University (ANU) academics Cukkoo Joseph and Ben Phillips.
Australian politicians like New South Wales (NSW) Premier Gladys Berejiklian and other politicians had earlier claimed that the housing price problem in Sydney could be solvevd and affordability could be ensured by ramping up the housing supply ramping up the housing supply but the conclusions of the study which was released on Monday, directly contradicted such claims by the politicians.
Increasing the housing supply would have "some benefits" even though it was "unlikely in isolation to create affordable housing", said Phillips and Joseph.
"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.
In what was demoted as the most significant surplus of the 328 regions in Australia studied by the researchers, there was a surplus of 5900 dwellings relative to population growth since 2001 in inner-Sydney.
With respect to the population growth in Australia since 2001, the housing sector there has built 164,000 more dwellings than required to deal with population growth in total.
"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."
A house with a median house price lower than 500,000 Australian dollars (377,000 U.S. dollars) cannot be found in any of the Sydney suburb, data released in October revealed. The median house price was below that benchmark in 159 suburbs in Sydney in 2012.
(Source:news.xinhuanet.com)
In fact, researchers found that despite a long-term oversupply in many suburbs, the house prices in the city had soared. The study which was primarily an analysis of the Sydney housing market, was done by Australian National University (ANU) academics Cukkoo Joseph and Ben Phillips.
Australian politicians like New South Wales (NSW) Premier Gladys Berejiklian and other politicians had earlier claimed that the housing price problem in Sydney could be solvevd and affordability could be ensured by ramping up the housing supply ramping up the housing supply but the conclusions of the study which was released on Monday, directly contradicted such claims by the politicians.
Increasing the housing supply would have "some benefits" even though it was "unlikely in isolation to create affordable housing", said Phillips and Joseph.
"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.
In what was demoted as the most significant surplus of the 328 regions in Australia studied by the researchers, there was a surplus of 5900 dwellings relative to population growth since 2001 in inner-Sydney.
With respect to the population growth in Australia since 2001, the housing sector there has built 164,000 more dwellings than required to deal with population growth in total.
"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."
A house with a median house price lower than 500,000 Australian dollars (377,000 U.S. dollars) cannot be found in any of the Sydney suburb, data released in October revealed. The median house price was below that benchmark in 159 suburbs in Sydney in 2012.
(Source:news.xinhuanet.com)
