Lessons from east coast:
Foreign buyer surcharge risk to housing affordability and jobs
Property Council of Australia WA Executive Director Sandra Brewer caught up with Cbus Property Group Chief Executive Officer Adrian Pozzo at the 2018 Property Congress in Darwin, to talk about the impact of the foreign buyer surcharge on the east coast property market, housing prices and jobs.
What a foreign buyer surcharge would mean for Western Australians
If a foreign buyer surcharge is introduced in Western Australia, the increased risk to job creation and housing affordability is deeply concerning for home owners, buyers, investors, builders and the hard-working tradespeople who already do battle with job certainty centred on demand.
To create great places for people to live, work and play in Western Australia, projects need to be able to get off the ground – the foreign buyer surcharge is a major risk standing in the way of building strong and connected communities for future generations.
I’m here with Adrian Pozzo he’s the CEO of Cbus Property and he has some interesting comments to make about the impact of the foreign buyers surcharge on the east coast, what’s been the impact Adrian?
Our biggest concern on the east coast would be that to start a development, much of our presale has been from foreigners.
So, with the new surcharges that have been implemented right across the eastern seaboard – it’s cut out that presale opportunity which potentially would stop developments commencing, because they work a presale market initially.
So, you get about 10 – 15 per cent of foreign investors with presales, which is now disappeared.
So do you think there’s a risk that projects really won’t get off the ground if the foreign buyers’ surcharge was introduced in Perth and Western Australia?
We are concerned that developments will not kick off in the next 12 to 24 months on the eastern seaboard because of that situation, which will then create an undersupply again, which will then increase housing costs and apartment pricing, so we’ve got the perfect storm.
Well that’s very compelling thanks Adrian for sharing your views.