00:00I just want to explain the motivation of the study, because we saw an increase in the number
00:07of part-time employees, so we look at those numbers and then we start to link these numbers
00:13to entry into the housing markets.
00:16So what we found was astonishing, I mean, there is no way in Sydney we have someone
00:21on a part-time median New South Wales income, will be able to enter the markets, and then
00:26we also did for full-time employees, what we found also was more severe.
00:32So generally, the results doesn't look good, especially for prospective homeowners, because
00:38if you look at the next five to six years, it's becoming very difficult, the prices are
00:43going up, whilst the income is not increasing as much.
00:48So it becomes harder and harder for prospective homebuyers to get into the market.
00:53What is the average wage for a part-time worker?
00:56As of 2021, in New South Wales, it's $600 a week, and then for full-time it's $1,500
01:05a week.
01:06Okay.
01:07Your research also found that by mirroring the theory of full-time and part-time wage
01:12differentials, you found that income supplements like wealth and scaling down housing preferences
01:18played an important role in entering the house.
01:21What did you mean by that?
01:23Did you look at people's inherited wealth or what they could get from the bank of mum
01:26and dad, et cetera?
01:27Yes.
01:28What that means is if you just rely on the median income, it will not be sufficient.
01:33But if you get support, let's say from your parents, which we've had to the bank of mum
01:38and dad, that will supplement your income.
01:40Or maybe if you have investments in other assets, so you can use the gain from those
01:45assets to supplement your median income to be able to get into the housing market.
01:51So these are the supplements that prospective buyers also use.
01:54Okay.
01:55So you're looking predominantly around Greater Sydney.
01:57What did your research find around the country?
01:59The focus is on Greater Sydney, actually.
02:02But I think the findings can also be used in other cities like Melbourne, which is also
02:07similar to Greater Sydney.
02:09Yeah.
02:10So it's something that you can extrapolate perhaps across the country.
02:13Absolutely.
02:14Absolutely.
02:15Because the patterns look similar.
02:16So what do you hope and how do you hope these findings from your research will inform policy?
02:22Let us look at the impact of the findings.
02:25Because if it's becoming too unaffordable, what will happen?
02:32Prospective homebuyers will use the supplements.
02:34So let us say they get into the housing market.
02:36If they've got the supplements.
02:37Yes.
02:38If they've got the supplements, they can get into the housing market.
02:40And for them to sustain the mortgage, they may have to forego other expenses at home.
02:46For example, social and recreational activities.
02:50And also they may have to forego other essentials at home.
02:54So that is going to impact on them.
02:56It will generate what is called housing-induced poverty.
03:01So that will be the impact.
03:02So going forward, I think we need some supply-side policies.
03:06Well, we have the housing accord.
03:08Yes, there is.
03:10We need to fast-track that.
03:11And also we can look at inclusionary zoning, especially for the private developers.
03:18The government can give them incentives.
03:20So let us say for a given block, the government can give them incentives to provide maybe
03:2510 to 20% affordable houses, and then they will allow them to increase the level of apartments
03:33on the block.
03:34Supply-side and zoning are key to this.
03:36Yes.
03:37Yes, absolutely.
03:39Where the problem is coming from, the supply-side, because there is excess demand over supply.
03:45And the housing market is similar to other markets.
03:49If there is excess demand over supply, the price is...
03:52The price is up.
03:53Yes.
03:54It is a vicious cycle, isn't it?
03:55Yes.
03:56Dr Mustafa Bangura, thank you for coming in and explaining your research.
03:58Yes.
03:59Thank you, Cathy.
