2 minute read
Real Estate
Housing affordability in focus
A change of government at the forthcoming election would be unlikely to mean a housing affordability over the medium and longer-term this time around, according to Pete Wargent, co-founder agents, BuyersBuyers.
While there are some housing affordability, without a structural change to the Australian economy that concentration in Sydney and Melbourne - and to a lesser extent Brisbane - housing affordability is unlikely to medium and longer-term.
Mr Wargent said, “the 2019 election defeat was a shock reforms to negative gearing housing affordability is likely to remain a key tenet and measures taken to cool housing demand could make a marginal difference to affordability over time.”
“If the Coalition is returned in government, then we major changes, but Labor have made some interesting affordable housing, and at choose to target investors housing demand.” recommended a suite of measures, ranging from introducing a tax on vacant an affordable land register. And, of course, there is the billion Housing Australia Future Fund to build lowcost houses and affordable dwellings for frontline workers, which would deliver 20,000 social houses over the make a difference to housing affordability at the margin, for certain key workers, but which tend to have a bigger than measures taken to build
“As we’ve seen in the relief for individual landlords could still be restricted, though it’s worth noting that of the legislation in 2017. Something similar could easily be looked at by the ALP in the coming years as a chest” Mr Wargent said.
Expect the status quo if the Coalition wins
Doron Peleg, co-founder and CEO of BuyersBuyers, said “the incumbent government’s focussed on the First Home market, and the HomeBuilder from market commentators, remarkably successful in what they set out to do. First homebuyer commitments have run as high as we’ve homebuyer stimulus through increase in the rate of
“And the HomeBuilder stimulus was also successful with over 229,000 dwellings November 2021, which is house construction as surged” Mr Peleg said.
Medium-term challenges for affordability
Mr Peleg of BuyersBuyers said “the Australian housing market faces two major overall weakness in the jobs outside Sydney and Melbourne (and, to a lesser extent, Brisbane). Consequently, since the end of the mining boom, substantially higher than the triggered some changes, and demand for lifestyle areas, these changes are not similar in scale to the shift that we had through the mining boom years, when the ‘resources Western Australia, enjoyed very strong demand for housing.”
“With no large-scale create hundreds of thousands on a large scale is unlikely. The demand for welllocated housing in Sydney, Melbourne and Brisbane will therefore remain high” Mr Peleg said.
“The other issue is a chronic free-standing houses in areas Overall, there is a known and coordination between the federal, state, and local governments to solve this middle ring suburbs, resulting in the ‘missing middle’ and medium-density townhouse
“This issue is also unlikely to be resolved in the near future. When we add to that issue is here to stay.”
“Overall, our conclusion is that over the medium and long term, it’s highly unlikely that housing affordability will is a change of government in the 2022 Federal Election. Homebuyers and investors will likely continue to said.
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