Election thought leadership
This weekend Tasmania heads to the polls.
A minority government of some form is at unbackable odds. Final result after Easter.
Our housing thought leadership has been endorsed by both major parties.
Both leaders are pitching the most ambitious housing policies in a decade.
Medium density incentives and a ‘Three Strikes Rule’ to encourage local planning approvals are on the table.
With thanks to our Division Council, led by Heather Mason, and to Executive Director Rebecca Ellston for championing reform.
Zoning zeroes
Expert insight from Chief Economist at the Centre for Independent Studies Peter Tulip recently on Housing Affordability and Supply Restrictions.
Key take outs:
Planning restrictions are the root cause of inflated housing prices. This is an argument for better planning systems not no planning systems
A well-functioning housing market would respond to the higher demand by building more dwellings — as seen in most kinds of markets. Instead, because planning limits supply in housing markets, we get higher rents and prices
Demand-side factors are relevant, but the crucial issue is HOW those demands interact with an artificially constrained supply due to zoning restrictions
Arguments focused on tax concessions, construction volume or developers withholding supply distract from the core issue of planning restrictions. These are minor ‘complementary explanations for rising prices, not an alternative’. For example, Tulip’s summary finds negative gearing and CGT on housing is 1-4 per cent of house prices vs 29-42 per cent for planning restrictions (detached housing, table above)
As the Commonwealth Productivity Commission (2022, Section 12.5) concluded, based on its survey of the research, “More supply — in any segment of the market — can improve affordability for low-income households”
There are valid reasons for providing temporary and targeted public housing, noting most recipients would be better served by receiving increased cash rental assistance
Ultimately the main game is co-ordinated city-wide increases in supply, organised by state governments.
Thanks Peter, well worth the read.
Get involved and win
Our Procore/Property Council Industry Sentiment Survey helps shape our advocacy efforts, and your input could win you a $250 VISA gift card.
Speaking of rewards, if you have a project worth celebrating, act quickly as nominations for the Property Council of Australia/Rider Levett Bucknall Innovation & Excellence Awards close next Wednesday.
And finally, if you are not yet a member of the Property Council, and are keen to learn a bit more about all the benefits that come with being one, we have a special March offer: new members receive a complimentary ticket to one of our industry events and we are waiving the joining fee. Get in touch to find out more.
Next week, migration.