Stockland CEO: Housing Crisis on the Horizon

At his speech at an Australia-Israel Chamber of Commerce lunch in Sydney yesterday, Mr Quinn spoke on how bureaucracy, poor planning and the trend towards building "extravagant" homes was leading towards a situation where the nation would face a chronic housing shortage by 2050 when the population is projected to reach 36 million.

According to him the average home, costing $485,000, was far beyond the means of the average first-home buyer which was at most $330,000; based on an average family income of $71,600. If interest rates rise one percentage point this year, as expected, the buying power could fall to only $300,000.

The sharp increase in house prices is partially due to growing demand for larger houses from buyers.

In addition, Mr Quinn criticized current urban planning strategies which he said were "inadequate" to support a rapidly growing and ageing population, which was because federal and state governments had failed to work together. He urged both governments to work together to provide a streamlined, sustainable urban development program.

In his speech, Mr Quinn also explained how Stockland was trying to do its part in alleviating the situation by attempting to build smaller housing, but using the space more efficiently. The company's average lot size has decreased to 540 square metres, and houses in its Highlands community in Melbourne will be just 144 square metres.