A researcher says developers shy away from affordable homes because it is artificially made unprofitable by a series of regulatory obstacles.
Speaking to FMT, the Institute for Democracy and Economic Affairs proposed several methods, including reducing the government’s direct involvement in the construction of low-cost homes and regulatory costs that developers needed to meet.“But developers shy away because it is artificially made unprofitable by a series of regulatory obstacles.”
In the paper, Ferlito also warns that stringent low-cost development requirements in the NHP should be avoided to better facilitate supply and demand, taking into account location and size factors.“But this may only make it feasible to be developed far from economic centres like cities due to the high cost of land.
Carmelo, who is an economist, also said the government should consider ways it can play a role in the low-end rental market, rather than just on the supply of affordable homes for sale.