The OECD has blamed Australia’s restrictive planning and zoning for driving the fourth sharpest property price increase in the developed world over the past 20 years:
Paris-based OECD director of policy studies in the economics department, Luiz de Mello, said low interest rates had contributed to rising house prices.
But restrictive regulations were also a leading reason why the supply of new housing had failed to keep pace with demand from high population growth and strong immigration levels before the pandemic, he said.
