Price surge puts property on election map

Property prices have increased more than 30 per cent in a year in 25 federal electorates, elevating housing affordability into a frontline issue at the coming election.

Affordability could becoming a pressing issue in the next election.

Property prices have increased more than 30 per cent in a year in 25 federal electorates, elevating housing affordability into a frontline issue at the coming election.

The pain for would-be buyers is most acute in the Labor-held seat of Gilmore on the NSW south coast – pencilled in by both Labor and the Coalition as key – where the median house price is up 40 per cent, from $633,165 to $883,384.

The potential $250,219 gain is more than four times the est­imated mean annual income of local workers, according to affordable housing body PowerHousing Australia.

In Raymond Terrace near Newcastle, in the seat of Paterson held by the ALP by 5.04 per cent, prices increased 35 per cent. In ­Defence Minister Peter Dutton’s electorate of Dickson, north of Brisbane, suburban Strathpine saw prices rise 35 per cent to $890,913. Seats held by independents have also experienced rapid rises, including Zali Steggall’s seat of Warringah (Manly up 32 per cent). In Hughes, held by the ­United Australia Party’s Craig Kelly, prices in Sutherland are up 33 per cent.

Nationally, property prices ­increased 25.7 per cent through 2021, according to CoreLogic.

PowerHousing Australia chief executive Nicholas Proud said rapid price rises put pressure on first-home buyers and had a flow-on effect to rental properties, which are experiencing record-low availability.

“We’ll be hearing from people across the board that housing ­affordability is challenging and it will need to be one of the most central decisions taken by government in the future,” he said.

Research commissioned by the Housing Industry Association and released last week showed just under 70 per cent of Australians believe governments have a role in helping people into homes, with 53 per cent rating the federal government poorly on housing ­affordability.

Liberal MP Jason Falinski – who chaired a federal inquiry into housing affordability and supply – expects the issue of home ownership, alongside cost-of-living ­pressures, to be more important at the ballot box than health as Covid concerns ease.

His seat of Mackellar on Sydney’s northern beaches ranked sixth for price growth (up 35 per cent) and now reports one of the highest medians in the country at $2.2m. “This issue isn’t new, it has been around since John Howard was prime minister, “ Mr ­Falinski said.

“Home ownership cuts through two demographics: people under 40 are saying it is nearly impossible to own a home, and people over 55 – their parents – who are helping them.”

The recommendations from the affordability inquiry were handed down last week. They included delivering new housing supply with the support of state and local governments, scrapping stamp duty, and allowing first-home buyers to use their superannuation as collateral.