HOUSING CRISIS WON'T BE SOLVED BY DEMAND-SIDE POLICIES, PROPERTY EXPERTS WARN

Australia’s housing crisis will not be solved by first-home buyer incentives or tax changes alone, with leading property figures warning governments must tackle supply constraints if affordability is to improve.

Speaking at the Kanebridge Quarterly Property Leadership Summit in Sydney last week, expert project marketing specialist Sam Elbanna, property investor and fund manager Paul Miron and property consultant Karla McNeice said that a lack of housing supply remained the central issue facing the market.

Elbanna, Director of CPM Realty with more than 30 years’ experience in project sales, argued that successive governments had focused too heavily on stimulating demand rather than addressing the barriers preventing new housing from being delivered.

“The misconception is that politicians think the way to solve the housing crisis is to drive demand,” he said.

“The reality is that’s not the way. This is a supply-side problem, and it needs to be solved on the supply side.”

Drawing on his experience in project sales, Elbanna said policies designed to help first-home buyers often had unintended consequences, pointing to previous grants that ultimately flowed through to higher property prices.

Instead, he said developers were facing increasing red tape, approval delays and rising costs, which were discouraging new housing supply.

“In the absence of stock, demand exceeds supply,” he said.

Miron, a Co-Founder and Fund Manager of Msquared Capital, said the housing debate had become overly focused on tax policy while overlooking broader structural issues.

He argued that affordability challenges stemmed from a combination of factors, including planning constraints, supply shortages, migration levels and interest rates.

“No-one can be 100 per cent certain on the real reason for property prices is going up,” he said.

“The reason why property prices are higher is a combination of interest rates, lack of supply, migration, vacancy rates and maybe taxes play a role.”

Miron was critical of recent federal housing policy changes, warning they could reduce the number of new homes being built and further constrain supply that was even highlighted in the budget.

He also highlighted the importance of the property sector to the broader economy, noting that residential real estate and related industries employed more than one million Australians.

McNeice, who advises developers on sales strategy and market intelligence, said understanding buyers had become increasingly important as affordability pressures intensified.

While affordability remained a major consideration, she said today’s buyers were focused on value rather than simply price.

“People are looking for value for money,” she said.

She said buyers were increasingly evaluating factors such as transport connections, walkability, nearby amenities and flexible living spaces that could accommodate changing family needs.

“What infrastructure is going on? Can I walk to the shops? Can I meet people at the local cafe?” she said.

The panel also discussed the mounting pressures facing developers, with Elbanna arguing that many projects become financially unviable from the moment a site is purchased.

“The viability of a development happens at the moment the site is bought,” he said.

He said rising construction costs, higher interest rates and overly optimistic feasibility assumptions had left some developers exposed as market conditions changed.

While acknowledging the growing number of smaller and first-time developers entering the market, Elbanna said property development required expertise across finance, construction, marketing and legal disciplines.

“It is actually a business that requires a level of expertise,” he said.

Looking ahead, the panel agreed opportunities remained in the market despite current challenges.

Miron said property should continue to be viewed as a long-term investment and cautioned against trying to time short-term market movements.

McNeice said success would increasingly depend on identifying projects that genuinely met changing buyer expectations.

Elbanna said affordable housing remained achievable, but developers needed to deliver more than just homes.

“We can provide affordable housing in this country,” he said.

“But we’ve got to wrap that affordable housing with the things that people want.”

As Australia’s housing affordability debate intensifies, the panellists agreed on one point: without a meaningful increase in housing supply, demand-side measures alone are unlikely to solve the nation’s property challenges.

The 1860s Darlinghurst mansion Stoneleigh could become Sydney’s most expensive home ever sold under the hammer when it goes to auction.

Clint Ballard is giving buyers a $28 million guide for the heritage-listed mansion on Darley Street, opposite Iona, the former home of Hollywood royalty Baz Luhrmann.

Stoneleigh is being offered for sale for the first time in 36 years. The home is owned by jeweller Vanessa Wong, who took the keys in 2016, after the Wong family paid $3.18 million in 1990. Wong renovated the home shortly after taking ownership, adding a pool to its 650 sqm grounds.

A Landmark on the Heritage Register

‘Stoneleigh’ is recognised on the NSW State Heritage Register for its architectural elegance and historical significance, and remains a defining presence within the tightly held Darlinghurst Ridge heritage precinct, an enclave prized for its concentration of intact colonial and Victorian-era residences just minutes from the CBD.

While the bones of the home date to 1860, its current form reflects a considered architectural transformation by Brian Hess, with landscaping by Dangar Barin Smith, that reconciles the villa’s historic fabric with the demands of contemporary living.

Stoneleigh was added to the State Heritage Register in 1999. It features a hipped corrugated steel roof, a bank of 12 paned timber framed double hung windows to the first floor, and arched colonnade to the ground floor, all set behind a Victorian cast iron palisade fence and colonnade extends around one side of the building.

Two of its previous owners have included Richard Jones, who was Chairman of the Commercial Banking Company of Sydney and the founder of the Maitland Mercury newspaper. He owned the home for around two decades from 1870. From the mid-1890s, J. Russell French, who was General Manager of the Bank of New South Wales, had the keys.

Grand Interiors, Resort-Style Grounds

Inside, the home unfolds across multiple levels, anchored by a statement marble kitchen with integrated dining that flows into expansive formal and informal living zones. These spaces open out to a private terrace and tropical gardens, blurring the line between indoor and outdoor living in a way that’s become the calling card of Sydney’s top-tier renovations.

The outdoor offering is a standout in its own right: a 3-metre-deep mineral pool with geothermal heating anchors a resort-style entertaining garden designed for year-round use, an increasingly sought-after feature among buyers at the top of the market.

Accommodation is generous with six bedrooms in total. There are two master suites, including a primary retreat built around a Japanese Hinoki bath, along with additional bedrooms, terraces and substantial storage, a rare inclusion in an inner-city heritage home of this era.

Finishes throughout run to French Oak flooring, hand-applied Marrakech plaster walls, bespoke lighting by Michael Anastassiades and a Stuv fireplace, all supported by advanced geothermal climate control, ducted air conditioning and a full security system. A cellar on the lower ground floor houses a functioning heritage well, a genuinely rare survivor that underscores just how much of the property’s 19th-century character has been preserved.

Perhaps most notably for an inner-city heritage property, ‘Stoneleigh’ offers secure parking for up to five vehicles, a feature agents will no doubt lean on heavily, given how scarce multi-car garaging is within walking distance of the city.

Key Features

Architecturally redesigned by Brian Hess with landscaping by Dangar Barin Smith
Landmark c.1860 Victorian Regency residence with a refined contemporary transformation
Resort-style outdoor living with mineral pool, geothermal heating and tropical gardens
Designer marble kitchen with integrated dining and Sub-Zero, Wolf and Miele appliances
Multiple formal and informal living zones flowing to an outdoor entertaining terrace
Two master suites, including a primary retreat with a Japanese Hinoki bath, plus additional bedrooms
French Oak flooring, Marrakech plaster finishes and bespoke lighting throughout
Advanced geothermal heating/cooling, ducted air conditioning and full security system
Stuv fireplace, Michael Anastassiades lighting, retractable awnings
Secure parking for up to five vehicles — a rare inner-city offering
Level walk to fine dining, bars, cafes and train stations; 2km to the CBD
Moments from some of Sydney’s finest schools, including Ascham, SCEGGS and Sydney Grammar

A New Record?

The highest price ever paid for a residential house sold under the hammer in Sydney is $24.6 million, for a home in Vaucluse in September 2020.

Bidding opened at $13 million for the 1,085-square-metre block against an $11 million price guide, and the hammer fell at $24.6 million — well above the $14 million reserve. A young Australian-Chinese couple who’d never bid at auction before walkedaway with the keys. That result broke the previous auction record of $23 million, set by media scion Lachlan Murdoch’s purchase of the Bellevue Hill mansion “Le Manoir” in 2009.

Late last year, Iona, across the road from Stoneleigh, sold by private treaty for $37.5 million. It was bought by Bryant Stokes, son of the billionaire Channel 7 chairman Kerry Stokes, and his wife Dominique. It was sold by investment banker Tim Eustace and his partner Salvador Panui, who bought it from film director Baz Luhrmann for $16 million in 2015.

HOUSING CRISIS WON’T BE SOLVED BY DEMAND-SIDE POLICIES, PROPERTY EXPERTS WARN

Australia’s housing affordability crisis is being fuelled by chronic undersupply, planning delays and rising development costs, as politicians continue to focus on the wrong solutions.

A Landmark on the Heritage Register

Grand Interiors, Resort-Style Grounds

Key Features

A New Record?