Future Directions tackle the housing affordability challenge
The latest Queensland Future Directions committee event, held on 22 June, saw a panel of industry experts assembled to analyse one of the most elusive challenges facing Australian policymakers and the property industry – housing affordability.
Tim Lawless, Research Director – CoreLogic, provided a keynote address utilising CoreLogic’s data to illustrate the complexity of the affordability issue. Through an analysis of capital city data, Tim demonstrated how prices have outstripped wage growth in recent years and pushed home ownership out of research of many Australians. The growth in the market share of domestic investors purchasing properties, particularly in Sydney and Melbourne, has been a noticeable trend in recent years – further fuelling price growth. Tim presented CoreLogic’s research on the barriers to entry into the market, and how long it would take to save for a deposit and other purchase costs in each market.
Following Tim’s presentation, he was joined onstage by Fran Rex, Property Risk – ANZ, and Bruce Harper, Avid Property Group General Manager – Qld, for a panel session moderated by Future Directions committee chair, Daniel O’Driscoll – Investment Analyst, QIC.
Fran Rex spoke to ANZ’s experience in lending to home buyers and the effect of new APRA changes on lending conditions. As the market adapts to changing trends and conditions, such as smaller lots and innovative products, Fran believes that bank valuation practices will need to continue to evolve.
Bruce Harper outlined Avid’s experiences in their Palmview development on the Sunshine Coast. First home buyers make up 40% of purchasers within that development to date, a significantly larger proportion that the long term trend. Bruce outlined that demand is coming not just from a good mixture of locals, but also from interstate investors priced out of the Sydney and Melbourne markets.
While Fran and Bruce were undecided on the merits of the Federal Government’s recent changes which will allow first home buyers to draw on their super savings to purchase a home, Tim Lawless classified it as poor policy. All panellists agreed that initiatives to increase supply were what was needed to address the housing affordability challenge.
The Property Council would like to thank our industry experts for sharing their insights on the affordability challenge, and Herbert Smith Freehills for hosting the breakfast seminar. Our Future Directions series events would not be possible without the support of Principal Sponsor, Savills Project Management, and Supporting Sponsor, Cedar Woods.
Photos from the event can be found here.
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