Housing Minister Clare O’Neil has been left completely stumped by a simple question on whether she wants house prices to go up or down, during a fiery on-air television interview.
Ms O’Neil joined Channel 7’s Sunrise on Wednesday to discuss housing tax changes and their effect on the market, after property values fell in Sydney and Melbourne.
But the Housing Minister was left without the blueprints to answer a straightforward question on whether she and the government wanted house prices to go up, or down.
With auction clearance rates softening and confidence wobbling, Sunrise host Natalie Barr asked Ms O’Neil: “How much does the government want property prices to fall?”
“Well, that’s not what the government wants and that’s not the effect of the government’s policies,” Ms O’Neil said.
Barr then pressed the minister if that meant she wanted house prices to go up.
“What we want to see is sustainable growth, Nat,” Ms O’Neil said.
But Barr quickly interjected and asked: “So you want them to go up?”
“Well, what we want is to see sustainable growth,” the minister repeated.
“Yeah, but just to be clear, do you want house prices to go down or up, Clare, as the Housing Minister?” Barr asked again.
“Pardon,” Ms O’Neil responded.
“Do you want house prices to go up or down?”
“I want to see sustainable growth in house prices,” Ms O’Neil said.
“So that’s up?” Barr replied.
“Well, I don’t think we want to see 400 per cent increases in house price over the last 20 years,” the minister said.
“But was that up or down? I’m confused,” Barr said.
“I’m trying to answer your question,” Ms O’Neil said.
“I don’t think we want to see a 400 per cent growth over 20 years which is what we’ve seen... But I do want to see property prices grow. I want to see them grow sustainably for the country.”
The awkward exchange comes as the property market shows signs of strain amid higher interest rates and concerns about Labor’s housing tax overhaul.
New figures from property data firm Cotality released on Monday showed Sydney and Melbourne property values continued to decline through May.
Sydney dwelling values fell 0.9 per cent last month, declining 2.1 per cent over the past three months.
Melbourne values dropped a further 0.8 per cent in May, taking quarterly declines to 2.3 per cent.
The downturn has coincided with Treasurer Jim Chalmers’ budget changes to negative gearing and capital gains tax, as well as the RBA lifting interest rates to 4.35 per cent.
