The recent announcement of the New South Wales government mandating housing affordability targets of 15-25% on private land was slammed by industry watchers, who said this could put supply in danger.
In a statement, Urban Taskforce CEO Chris Johnson said the new policy adds an excessive tax to housing supply and makes projects economically unviable in the current market climate.
“The current housing supply market is slowing down through restrictions on lending from banks and from the uncertain climate of potential levies from councils. To add another tax will have a very negative impact on the number of new homes that will be built in future years,” Johnson said.
According to the mandate, every residential development planned for state-owned land would have to allot 25% of its planned dwellings to affordable housing. For private land rezoned for development, 15% should be designated for affordable homes.
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