Foreign investment delivers more jobs, new homes
The 2013-14 FIRB Annual Report released today shows foreign investment is helping accelerate much needed new housing supply in Australia and creating jobs in construction.
Property Council of Australia Chief Executive Ken Morrison said foreign investment is helping combat a decade of housing undersupply in Australia, which has been the main cause of increased house prices.
“The significant increase in foreign investment into newly constructed housing is very good news for affordability in Australia,” Mr Morrison said.
“For more than ten years we have been failing to keep up with demand, falling short by some 11,000 homes on average every year. Sydney alone faces a shortage of 190,000 homes in the coming decade.
“An insufficient number of homes to meet demand just creates upward pressure on prices.
“But we are finally starting to turn the corner with building activity up to record levels meaning that the supply of new homes is now meeting demand, even though we are yet to make headway on catching up on the backlog.
“Every newly constructed home that a foreign investor purchases enables up to four other homes to be built, so this boost is good news for affordability.
“The only way to improve housing affordability is to get more housing on the ground earlier, and foreign investment is making this happen.
“This has the added benefit of creating thousands of new jobs in the construction sector, as well as demand for construction materials and services.
“Without foreign investment new projects will come online later or not at all, diminishing supply and meaning that ordinary Australians end up losing out on sources of affordable new housing.
“This investment is not competing with Australians looking to purchase existing houses, it’s helping to support the construction of new housing for everyone.
“It is vital to distinguish between legitimate, beneficial and lawful foreign investment in new dwellings and community concern about illegal foreign purchases of existing dwellings.
“The Property Council fully supports government action to ensure compliance with foreign investment rules.
“However, we strongly caution against penalising lawful foreign investment with unwarranted big new fees that will act as a deterrent to the investment Australia needs to build more homes and put downward pressure on prices.”
Media contact: Fiona Benson | M 0407 294 620 | E [email protected]