Sydney is facing a ‘housing bubble’ after a surge in prices in the past five years, according to a UBS Group report.
The UBS Global Real Estate Bubble Index report analysed residential property prices in 18 ‘financial centre’ cities around the world, with Vancouver, London and Stockholm topping the list and Sydney coming in fourth.
According to the report, Sydney house prices have risen 45 per cent since 2012, with rapidly growing demand from foreign investors driving prices higher.
A ‘bubble’ or not, housing affordability is in crisis in Sydney because of legislative and taxation frameworks that increase inequality.
The Greens went to the last election with a sensible approach to housing affordability – reforming the negative gearing and capital gains tax measures.
Those simple reforms would save over $10 billion of dollars each year, yet the conservative coalition government is cutting vital services instead of making the right decision for the community.
Its time to recognise that these measures have had their time and to reform them now.
To read the full Greens’ negative gearing and capital gains tax policy, click here: http://greens.org.au/ng-and-cgt