The State of Australian Cities 2011 sets the stage for the implementation of much-need planning reform coupled with a major boost to infrastructure spending, said the Property Council of Australia and the Residential Development Council (RDC) on Thursday.

The comment comes after the Federal Government released the report, which provides a foundation from which to build and grow sustainable and productive cities of the future.

Peter Verwer, Chief Executive of the Property Council of Australia, said if Australian’s are to maintain and improve our standard of living, it is essential that there is a major injection of funding into infrastructure which links our cities to each other and at the same time improves internal connectivity.

“The time has also come for a radical overhaul of our planning system with all tiers of Government working together to develop an integrated system that will ensure the best possible outcomes for all Australians,” he said.

Caryn Kakas, Residential Development Council Executive Director, said availability of affordable and diverse housing choices are key to meeting liveability targets.

The report highlights two challenges to housing - delivering both new suburbs and regenerating inner suburban communities.

“With the exception of Sydney, families are still choosing to live in newly established suburbs and these areas are also delivering a large proportion of new jobs.”

“If these areas are to evolve into fully vibrant, sustainable communities with a similar range of lifestyle and employment options as can now be found in the existing suburbs, we must plan, fund and deliver infrastructure which fully support the transport needs to residents, business and employees.

She added, “The cost and delivery issues of building in our cities must be addressed head on if we are to match people's choice locations with affordable housing choices.”