Page 3507 - Week 11 - Wednesday, 15 November 2006
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limited to federal and state housing and planning ministers, industry groups and community organisations.
This government believes that housing is one of the threshold issues in our community. Safe, affordable and secure housing is fundamental to the wellbeing of individuals and communities. It is important that we identify all the available options to help deliver that for the people of Canberra. Recent data from the Real Estate Institute of Australia on home loan affordability confirms that housing in the ACT is the most affordable in the nation. Building approvals continue to grow and the ABS trend data indicates that approvals for September 2006 were 30.2 per cent above the average level of approvals over the past five years. That is the highest level of residential approvals recorded in the ACT since January 2003.
The significant increase in residential building approvals demonstrates that many Canberrans are making the most of that. The number of housing finance commitments for owner occupation in the ACT rose 2.8 per cent in September 2006. Nationally, the number of commitments fell 1.2 per cent. Housing finance commitments made by first home buyers constituted around 21 per cent of all housing finance commitments in September. That is in line with the longer-run monthly average of 19.8 per cent. The first home buyer share has almost doubled from the low point of around 10 per cent recorded in late 2003 during the housing boom.
That is particularly encouraging and follows further Real Estate Institute of Australia, or REIA, data which showed that the ACT was the only state or territory to record an improvement of 3.8 per cent in housing affordability in the 12 months to 30 June 2006. That was despite falls between the March and June quarters, resulting from the interest rate rise in May this year.
Mr Speaker, there is a positive side to the strong housing market and it should not be overlooked. Household wealth has increased considerably and that is reflected in general economic activity. Employment remains strong. The government, however, recognises that the strong growth in house prices over recent years has meant that some Canberrans have to defer the purchase of their first home. Lack of affordable housing choice is not an issue for this government alone. All governments across Australia face this issue. I know that the Chief Minister has asked that the affordable housing steering group make recommendations to government on initiatives that will increase the supply of affordable housing. It is hoped that they will also identify and assess the factors that affect housing affordability that the ACT government is able to influence.
This government is committed to achieving a long-term sustainable and affordable housing sector in the territory. The government’s action in other areas of its social, economic and planning agenda is designed to have beneficial outcomes for housing affordability. It is pleasing to note that the work of the steering group continues to implement the government’s vision for housing as expressed in the Canberra social plan. Housing for a future Canberra is a key priority of the Canberra social plan, which states:
Housing provides every person in the community with a basis for a stable, healthy and productive life. More than anything else, it provides a sense of belonging and identity.
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