Real Estate Institute of Tasmania president Tony Collidge has welcomed the federal government's announcement to waive the state's $157.6 million housing debt but says more resources are needed to fully address the affordability and access issues.
A historic deal to waive Tasmania's $157.6 million Commonwealth housing debt will help relieve pressure in places such as Hobart but needs to be carefully managed, the Real Institute of Tasmania says.
Federal Housing Minister Michael Sukkar announced on Sunday that Tasmania's outstanding loans to the Commonwealth would be waived, allowing the state government to save $230.2 million in total interest and principal repayments to 2041/42 (end of loan term), which they will be required to put into programmes that "increase access to social housing, reduce homelessness, and improve housing supply across Tasmania".
REIT President Tony Collidge told WILLIAMS MEDIA that while the deal presented an opportunity for the state government, accessing the resources needed to build more homes was another challenge.
"There are a number of hotels that are being built and the commercial sector is definitely growing," he said.
"A real concern is that one of these players will come in and pay a premium to get the services of one of these tradies, which could push the prices right up."
"This could mean that instead of getting an extra 80 houses per year, as has been reported, we may only get 75.
"We are already one of the most expensive places in Australia to build housing accommodation, simply because of the gap of water and the lack of competition."
Earlier in the year, the REIT was invited to submit a report to the Tasmanian House of Assembly in relation to housing affordability.
The institute described Tasmania as a "victim of its own success", identifying "a booming tourism market, flourishing tertiary education environment and growing agricultural and Aquaculture industries" as the catalyst for strong jobs growth and a prospering economy
Mr Collidge said the size of the state meant housing accommodation in areas such as Hobart was not able to keep up with the growth experienced throughout the past few years.
"Hobart is the 11th largest city in Australia, so it doesn't really have the capacity to deal with these peak periods," he said.
"We've had a perfect storm arrive in relation to the growth of the University of Tasmania and rise in tourism numbers.
"There are also more people staying here to find work as there are more jobs than there were before.
"In Hobart, we are probably around 3000-5000 houses short."
As part of the new deal, the Tasmanian government will be required to publicly report on how the additional funds will be spent, along with the key actions and outcomes undertaken with these funds in its Budget papers for each relevant financial year."
Tasmanian Housing Minister Roger Jaensch described the deal as "the best possible outcome" for the state.
“Wiping the debt will save up to $15 million annually over coming years in debt and interest payments, which will be used instead to build more social housing for Tasmanians in need," he said.
“This is a marvellous result for all Tasmanians and will enable us to build more homes in addition to our Affordable Housing Strategy, underpinned by an investment of almost $200 million over eight years, the largest ever State Government investment into affordable housing in Tasmania’s history.”
Mr Collidge said he believed Mr Jaensch was a "genuine person was committed to helping the situation".
By Sean Slatter
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