The National Housing Finance & Investment Corporation (NHFIC) has released a research paper which shows that local governments’ fees on property developers are increasing the cost of new homes.
The report notes that developers’ contributions to the cost of financing local infrastructure can add up to $85,000 to the price of a home in New South Wales and $77,000 in Victoria. NHFIC CEO Nathan Dal Bon says these levies adversely affect housing supply and reduce housing affordability:
NHFIC draws on case studies and shows developer contributions typically account for around 8 to 11 per cent of total home construction costs, amounting to as much as $85,000 per dwelling in New South Wales, $77,000 in Victoria, and $42,000 in Queensland.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
