FIRB compliance action welcome but planning blockages the key to housing affordabilityThe Property Council of Australia welcomes the Government’s strong enforcement of the rules regarding foreign investment in existing residential property but says in order to improve housing affordability, the top focus for governments must be addressing planning blockages.Chief Executive Ken Morrison said a transparent and robust foreign investment framework was important and welcomed the Government’s recognition of the importance of legitimate foreign investment in new housing stock to boost supply and moderate price growth.”We support the Government’s efforts to enforce foreign investment rules but the best way to tackle housing affordability is to deal with the supply blockages in Australia’s planning systems,” Mr Morrison said.”Foreign investment is underpinning our current record growth in new housing construction, which boosts supply and will help rein in price rises in markets like Sydney and Melbourne.”Foreign investment has a big dividend on new housing stock with every newly constructed home purchased by foreign investor enabling up to four other homes to be built.”Foreign investment provides the crucial early stage capital to get big new housing developments over the line and into construction, delivering the twin benefits of more jobs and more new homes.”It is absolutely vital that we maintain current high levels of new home construction – it is the only meaningful way of tackling housing affordability.”The latest ABS housing finance data released today shows a reasonable supply pipeline that is likely to continue into F2016.”It is imperative that we have the right policy settings to spur on new construction and moderate prices.”That means retaining negative gearing, which boosts supply and keeps pressure of rents but also getting rid of some of the biggest barriers to home ownership, like stamp duty.”The latest ABS data shows first home buyers sitting at 15.2 per cent of the market – getting rid of stamp duty would provide a huge boost to these and other Australians looking buy property.”The latest ABS Housing Finance data shows the purchase and construction of new housing increased marginally by 4.2 per cent in seasonally adjusted terms for the month of April 2015, with a 6.5 per cent improvement over the year.Media contact: Fiona Benson | M 0407 294 620 | Property Council of Australia
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