A pledge made by NSW premier Gladys Berejiklian on her first day in the job has been called out in the wake of Tuesday’s state budget.
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St Vincent de Paul Society chief executive Jack de Groot said little was done by treasurer Dominic Perrotet to ease the housing affordability crisis engulfing NSW, claiming “the homeless and voiceless have been forgotten yet again”.
But Real Estate Institute of NSW Orana chairman Bob Berry defended the government’s spending in the budget, saying the market works in peaks and troughs.
“On the first day of her premiership Gladys Berejiklian announced her commitment to combatting the housing crisis, saying it was the biggest issue facing us as a state,” Mr de Groot said.
“Other than relief for some first time buyers, there is nothing on the ledger for those people who are paying up to 70 per cent of their income on rent and who face homelessness.
“Yes, there’s more for rail, roads, schools and hospitals, which is welcome news, but the Government will spend just 1.6 per cent of its expenditure on housing and community amenities in 2017-18.
“People will be sleeping rough, in their car, at friends or at one of our crisis accommodation facilities, until they manage to find a permanent place to live in a state that has become unaffordable.”
While conceding that in general there is an affordability issue, Mr Berry said locally the market is in a strong position.
He cited the continued development of property and planned boosts in infrastructure as key reasons why Dubbo is faring better than other parts of NSW
“Quite clearly there is an affordability issue, but in the 43 years I’ve been involved in real estate this certainly isn’t the first time we’ve had one,” he said.
“In saying that Dubbo, with a median house price of $355,000 and a unit price of $270,000 is still affordable. No, not everyone can buy but we have development that is boosting rental availability and helping in that regard
“Overall I think it was a very good budget. Money is being spent on education, health and other infrastructure so it is hard to criticise.
“I’m not sure what the state government can do because it really is just a case of the market playing out. To overcome an issue like this you either need to drop the prices or increase people’s disposable income.
“I’m not even sure the government should intervene in a free market. They don’t intervene in the stock market, they don’t intervene in the cattle market and if people are voting with their feet to invest in bricks and mortar its part of the market cycle.
“And the measures that we’ve seen locally in Dubbo with money for the hospital, the zoo, the new bridge and road additions, they are all job creating projects which put money in people’s pockets.