Property Market Overview
by
Adam Cingiloglu
Property Executive
Australian Property Valuations
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There will be 1.5 million skilled migration to Australia in the next 5 years
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Housing and apartment building development approval has halved
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Due to the shortage of housing and expected population growth real estate prices most likely to increase
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Government must give incentives to help builders
Building a lot more homes really is the answer, according to Joe Kehoe from AFR (The Australian Financial Review).
Housing Industry Association figures show starts on multi-unit dwellings – chiefly apartments – have fallen from a peak of 118,000 in 2015-16 to about 70,000 in 2022-23.
In the current economic cycle of rising interest rates and high inflation, the pain will be exacerbated by the Reserve Bank’s forecasts implying a per capita GDP recession for two years until late 2024, according to Westpac Business Bank economists.
Unless we plan properly for strong migration and population growth, the strains will be felt by everyday Australians. Retailers and property developers love more people to sell more products to, but Mr and Mrs Jones living in the suburbs don’t always enjoy the benefits of higher population.
Incentives to meet housing targets
We simply need more homes to house more people. That is the key message from the new head of the federal government’s National Housing Supply and Affordability Council, Susan Lloyd-Hurwitz, a former Mirvac boss.
She also wants negative gearing and capital gains tax discounts limited.
The positive impact on housing availability and affordability would be far more immediate for all aspiring homeowners, than the stalled Housing Australia Future Fund building a modest 6000 affordable and social homes a year.
(Source: AFR; John Kehoe; 17 May 2023)
