Allowing super for home-buyers could ‘explode’ the housing market

Allowing home buyers to access their super to purchase a home could explode the housing market according to a new report.
The proposal from Liberal MP Tim Wilson has been shot down by the McKell institute, which suggested that house prices in WA could inflate by 18.8 per cent, if buyers were allowed to access their super when applying for a home desposit
McKell Institute Executive Director, Michael Buckland, says the figures were surprising.
“This is the affect of when you release large amounts of money to a large number of people,” he said. “If you go and give every single person $60,000 from their superannuation to put into housing, it actually has a multiplier affect which is going to push up housing by almost double that in WA.”
The report used economic modelling from the Univerity of South Australia, and found prices around the country skyrocketed.
Hobart prices were tipped to jump by 22.8 per cent, Brisbane by 14.8 per cent and Adelaide by 20 per cent. Sydney was tipped to jump the least, with 4.6 per cent.
Mr Buckland says the prices would allow only a small minority of the population to afford a home.
“We actually had our researches forecast that after six months, the house price affect is so large that no one who wouldn’t already buy a house will get into the housing market,” he said.
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