Rate cut a boost for housing but NSW government must do more: Chris Johnson

The rate cut announced by the Reserve Bank of Australia to 1% is a great boost for the housing market but the NSW government must add its support.

The record low RBA interest rate of 1% sets a framework for a boost to the ailing housing market in New South Wales.

The NSW government must use this once in a generation low interest environment to reactivate the ailing housing market in the state. 

Housing approvals have collapsed over the last year and pre sales have also slowed down for new apartment projects.

The federal level is clearly trying to help with the RBA’s rate cut, as well as APRA’s loosening of credit restrictions on bank loans and the re-election of the Morrison Government has lifted confidence in the housing industry.

The missing ingredient is a signal from the NSW government that they want housing supply to continue.

The NSW government now needs to help kick start the industry by reducing the excessive time it takes for approvals, and by delaying the removal of the cap on local infrastructure contributions that could add $50,000 to the cost of a new home.

There also needs to be clarity on the status of various priority / planned precincts that seem to have got caught up in the rezoning process.

The Minister for Planning, Rob Stokes, and the Minister for Housing, Melinda Pavey, need to develop an action plan that can build on the positive environment that is coming from federal decisions.

They may also need to liaise with the federal Minister for Housing, Michael Sukkar.

The Urban Taskforce is keen to work with all levels of government to re-activate the housing industry in New South Wales.

CHRIS JOHNSON is the Urban Taskforce CEO.