DARK SIDE OF THE BOOM
Experts want action on rental, housing crisis
REAL estate leaders have joined welfare groups to call for urgent action to help the losers of Hobart’s housing and tourism boom.
The city’s red-hot real estate market continues to lead the nation, putting even more pressure on an unprecedented shortage of housing stock and rental properties. Industry and social welfare groups say Hobart is fast becoming Australia’s least affordable capital.
AN unprecedented shortage of houses is forcing Tasmanian families to cut back on basic necessities to stay in rental accommodation.
Real estate industry leaders and social welfare groups say Hobart is fast becoming Australia’s least affordable capital city to live in and the situation needs to be urgently addressed.
They say, that as Tasmania’s real estate boom and tourism surge show no signs of slowing down, the State Government must step in to provide more affordable, innercity housing.
Anglicare’s Meg Webb has called on the Government to invest the $60 million stamp duty windfall it received last financial year to provide more housing.
A survey conducted by Anglicare in early April showed there were 1363 properties advertised for rent across Tas- mania, including rooms in share houses.
Only 29 per cent of the properties advertised were within the financial reach of a single parent with one child on Newstart allowance and only six were affordable for a single rent on Newstart.
“The lack of affordable places to live is affecting people right up the income scale,” Ms Webb said.
“Housing is a basic necessity that has flow-on effects in terms of employment, education and successful family units.”
The number of properties available to rent in the state’s south has fallen by 60 per cent since 2012 and by 14 per cent in the past 12 months alone.
However, the asking price for a three-bedroom house has also jumped by $20 a week in the past year.
Shelter Tasmania executive officer Pattie Chugg says stateowned land at Macquarie Point would be an ideal spot on which to build affordable rental properties.
Ms Chugg said the Rental Affordability Index showed Hobart was the second least affordable city in which to rent, after Sydney, when Tasmania’s lower household incomes were taken into account.
“The tight vacancy rate makes this a very competitive market and households with low incomes are being squeezed out, or are paying the bulk of their income on rents,” Ms Chugg said.
“That means they are sacrificing meals, health care, education and other essential items to keep a roof over their
heads. Many don’t succeed,” she said.
Real Estate Institute of Tasmania President Tony Collidge says it’s time for a serious housing rethink to address the state’s “growing pains”.
Mr Collidge’s business manages 430 rentals, mostly in Hobart’s northern suburbs. He said he currently had just one vacant property, and 380 prospective tenants waiting to access rental accommodation.
That one unit, in Claremont, became available yesterday morning for $270 a week. Within an hour, 17 people had registered to inspect it.
Mr Collidge said the city was crying out for more medium-density housing near transport and jobs — not broadscale outer suburb developments.
He said the tourism boom, which has introduced a lot more people to Tasmania and its housing market, has been the main driver of the shortage.
He said the trend for property owners, who once rented to locals, to offer their investment as Airbnb accommodation was also having an impact.
One Airbnb operator the Mercury talked to said the switch not only saved the money paid to a real estate agent to manage the property, it alleviated the risk of getting bad long-term tenants.
Mr Collidge wants a rethink of housing in Tasmania.
“Perhaps what we need is a grant scheme, similar to the one which lured first home buyers into the market, to be established to encourage investment. What we need is infill housing such as townhouses in empty car yards and closed inner city schools,” Mr Collidge said.
“Not everyone wants to live out where the vacant land is.
“Many young people don’t want to buy into the market but want flexibility and decent places to rent. Baby Boomers also, looking to downsize, thus freeing up houses for families.
“At the moment just 20 per cent of the properties in Tasmania are available for rent with 80 per cent lived in by owner-occupiers.
“Compare this to Sydney where the ratio is 60 to 40 per cent and Europe where 80 per cent of the housing stock is available for rent and you can see Tasmania’s problem.”
Human Services Minister Jacquie Petrusma said the Government welcomed investment in Tasmania and was in the process of reviewing all crown land to assess what may be suitable for repurposing for housing to increase supply.
Any repurposing would support either the Government’s Tasmania’s Affordable Housing Strategy or increase supply into the broader housing market, Ms Petrusma said.
Mr Collidge said councils could also play a part in encouraging investment.
“Developers need answers quickly. Investors are looking at Hobart and Launceston as places to build townhouses and need to be encouraged,” he said.
ABS figures released yesterday show Tasmania’s dwelling approvals rose to 249 in August, up by 27.3 per cent in seasonally adjusted terms.
Master Builders’ Association executive director Michael Kerschbaum, said the rebound was due to underlying demand due to a tight rental market and population growth.
The State Government’s latest quarterly Affordable Housing Strategy progress report shows the scheme has already helped 352 new cases to access safe and affordable housing.
These included: 194 households assisted into affordable home ownership; 46 households assisted into supported accommodation and 33 households helped to access new social housing.
They are sacrificing meals, health care, education and other essential items to keep a roof over their heads. Many don’t succeed PATTIE CHUGG, Shelter Tasmania