Land, not tax, favoured to cool housing
An immediate release of land for residential development – rather than a capital gains tax – will ease soaring house prices, a new report says.
The Productivity Commission today released its final report on the housing market, following a house price boom early last decade. It recommends a series of measures to reduce the pressure on prices and support those struggling to get on the property ladder.
Between 2001 and 2007, real house prices almost doubled – an average increase of 12 per cent per year.
Although the boom has started to unwind, house prices remain above long-term levels. The number of households with at least one person employed which cannot afford to buy a dwelling has risen to 58 per cent of all private renters.
Commission Chair Murray Sherwin said younger people and those on lower incomes have ”much less chance of ever purchasing their own home”.
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