Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

As I indicated in response to the primary question, the Treasurer is working with state and territory governments in relation to housing affordability policy issues. We do understand, of course, that the most sustainable way of improving housing affordability is by making sure that supply increases to a level where it can meet demand.

Australia has a growing population. We have, in particular, a growing population in some of the larger population centres, and obviously there are cycles in the property market. Right now, in Sydney and in Melbourne, demand significantly exceeds supply. There is of course a response in the market as a result. If you look at the national accounts for the first quarter of 2015, you will see that there is a lift in investment in dwelling construction, and that is clearly a response to that upward pressure on prices. But we do need to do more. We do need to ensure that the states actually do better in releasing land so that there can be a more appropriate response. (Time expired)