The Prime Minister spent last week talking about negative gearing and housing supply.
He extensively quoted 2019 Deloitte research we commissioned showing a drop in new housing commencements by about four per cent based on 2019 Australian Labor Party policies.
Even if negative gearing changes did not model as poorly as they do, why would you choose to gamble with confidence and housing supply right now?
As found recently by PEXA LongView, it is likely that as many as 60 per cent of private landlords would have been financially better off putting their money into balanced Superannuation funds
We are already only building 160,000 homes against the 240,000 homes we need each year. Demand for detached housing in states like Victoria is currently dead as a dodo
CBRE’s September 2024 analysis shows production of 50,000 apartments per year to 2029. 2017, the apartment supply high watermark was double that.
Current housing headwinds operating in most state markets include:
high cost and hurdles of financing
a decade of high new household formation
catch-up immigration pains
years of rising material and labour inputs
decreasing construction productivity
low market capacity
labour market competition and cost escalation from historically large infrastructure builds and green/energy infrastructure construction
planning delays
looming ACCC acquisitions red tape
sluggish environmental and cultural approvals and
ever-changing and disruptive state property taxes and especially those on overseas investors, among other negatives.
Choose to divert from the last mile infrastructure and planning incentives path wisely agreed with State Premiers while pursuing 1.2 million new homes by 2029?
You just would not do it.
Book now and join me at the Property Congress
Sunny Townsville hosts our industry-leading national event, The 2024 Property Congress in three weeks.
Connect with CEOs, Directors and Managers, while gaining insights from industry and community leaders such as The Hon Peter Dutton, Cathy Freeman, The Hon Peter Costello AC, and Johnathan Thurston AM, who will share their ambitions and insights.
Great leaders, great insights, great networking – see you there! Learn more here.
Don’t miss out on a Committee position
And finally, a final friendly reminder that nominations for the Property Council Committees close on Friday. Don’t miss out—let your voice be heard.