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Perth Now
2 days ago
- Business
- Perth Now
'Think twice': Libs warned on anti-build to rent stance
The voice of the Australian property industry is urging the federal coalition to think twice about trying to block the construction of new rental homes. The opposition plans on Wednesday to move a motion in the Senate to halt the Labor government's Build to Rent program, arguing that it's against the national interest because it gives tax advantages to foreign investors. But the Property Council of Australia, which has more than 2300 members, says attempting to block the building of some 80,000 new rental homes in the middle of a housing affordability crisis is wrong. "This is wrecking ball policy," Chief Executive Mike Zorbas said on Wednesday. "The main game, the only game in Australia right now, should be the rapid supply of new housing." The Build to Rent legislation passed the Senate during the last parliament, ahead of Labor being returned to power at the federal election in May. Under the laws that applied from January 1 this year, the rate of withholding tax paid by developers halved from 30 to 15 per cent and the capital works deduction rate rose from 2.5 to four per cent, allowing developers to write off the cost of construction faster. Liberal Senator Andrew Bragg, who is leading the Senate motion, says the program is effectively a "tax cut for foreign investors". "Labor's obsession with foreign landlords and big super taking over Australian housing once again prioritises vested interests over Australia's national interest," he said on Wednesday. "The Australian Dream is about people - not corporations." Under the build to rent model, developers build and retain ownership of properties for rental purposes. The federal government has previously argued that the private market needs to do the heavy lifting to improve affordability and access to homes. Almost one-third of Australian households rent and that number is expected to rise in the years ahead. The government's Build to Rent measure will operate in addition to state and territory initiatives designed to support the Build to Rent sector. Under the legislation, at least 10 per cent of dwellings in a Build to Rent development must be affordable dwellings, which would be rented at 74.9 per cent or less of the market rate and have income thresholds for eligible tenants. The Property Council says build to rent housing offers high-quality, secure, long-term rentals in well-located areas and that the model is used in nations with economies similar to Australia's. But Senator Bragg says the coalition's priority is for Australians of all ages to own their own homes. The coalition's disallowance motion will go the Senate later on Wednesday.
Yahoo
11-06-2025
- Business
- Yahoo
Average Australian homes tops A$1m amid housing crisis
The average price of an Australian home has surpassed A$1m ($652,000; £483,000) for the first time, as the nation grapples with a housing affordability crisis. Figures released by the Australian Bureau of Statistics (ABS) this week estimate the average home was worth A$1,002,500 in the March quarter, up 0.7 per cent from the previous quarter. The nation is home to some of the least affordable cities on Earth, where buying or renting a place is increasingly out of reach for many Australians. Experts say the crisis is being driving by a lack of homes, a growing population, tax incentives for property investors, and inadequate investment in social housing. The country's most populous state, New South Wales (NSW), continues to have the priciest homes on average, at A$1.2m, followed by Queensland at A$945k, according to the ABS. The agency's Mish Tan said the states of Western Australia, South Australia and Queensland were the "main drivers of the rise". While the average price of homes climbed in all states and territories in the March quarter, the annual growth rate is slowing, she added. The figures take in Australia's 11.3m dwellings - including the full gamut of property types, from freestanding homes, to terrace houses and apartments. Michael Fotheringham, head of the Australian Housing and Urban Research Institute, is not surprised to see the $1m benchmark crossed. Though a "daunting" and "compelling" statistic, he says it is the result of a years-long national trend of home prices outpacing wages and leaving the housing system "very strained". "This isn't just an affordability problem for lower income households - this is very much a problem for medium-income households as well," he said. "Globally we're seeing the term housing crisis being used in many developed countries," he added, "[but] our housing prices have risen sharply so it's one of the less affordable countries overall." Rental availability has also been a problem in recent years, and there isn't enough social housing to meet demand either. Australia's looming election brings housing crisis into focus The year the Australian Dream died Canada is facing similar challenges, Dr Fotheringham said, but the UK was markedly different as it has more council estates and social housing in the mix. However, the UK and Australia do share what he called "ambitious housing targets" with Australia hoping to build 1.2m homes and the UK 1.5m homes within the next five years. Australia's Prime Minister Anthony Albanese - who won a second term last month at an election where housing was a top issue - on Tuesday said his government was looking to further reduce red tape for developers. They have long complained that planning laws prevent them from building enough homes. "One of the things that we have to do is to make it easier," he said, according to the Sydney Morning Herald, adding "developers say that it's just too complex [and it] adds to costs as well".
News.com.au
30-05-2025
- Business
- News.com.au
New housing approvals slip dangerously far behind National Housing Accord
Australia's housing shortage has taken another turn, with new data from the Australian Bureau of Statistics showing a sharp decline in overall dwelling approvals. The drop has been fuelled largely by a collapse in apartment construction, raising fresh concerns for young Australians already locked out of the housing market. The 'Australian dream' of a quarter-acre block was dashed for millions of Aussies long ago, but now it appears even the smallest of apartments are quickly falling off the table as well. For those born after 1990, who weren't gifted a trust fund, house deposit, or struck it big with a wild crypto gamble, the following figures will come as tough reading. The ABS figures, released on Thursday, revealed the total number of dwellings approved in April fell by 5.7 per cent to 14,633. The drop was driven primarily by a 19 per cent fall in approvals for private sector homes excluding standalone houses, which include apartments and townhouses. 'A drop in apartment approvals drove a 19.0 per cent fall in private dwellings excluding houses,' said Daniel Rossi, ABS Head of Construction Statistics. 'Meanwhile, private sector house approvals were up 3.1 per cent.' The collapse in higher-density approvals comes as Australia's population continues to surge, exacerbating what economists, social researchers and rental advocates have long warned is an unsustainable imbalance between supply and demand. According to CoreLogic, the national median dwelling value has increased more than 30 per cent since the start of the pandemic, while rental vacancies remain near historic lows. But new homes, particularly more affordable and urban apartments best suited for first homebuyers, aren't being built at a rate that reflects demand. The situation leaves younger Australians, who already face stagnant wages, high interest rates and record living costs throughout their working life, in an increasingly untenable position. Even April's modest rise in private sector house approvals, driven by 7.3 per cent increases in both New South Wales and Queensland, is unlikely to shift the dial. At 9,349 approvals, the result represents a 4.6 per cent year-on-year increase but does little to compensate for the decline in apartment projects. 'New South Wales had over 2,000 private sector houses approved for the first time since December 2023,' Rossi said, suggesting demand remains high in key states. However, critics argue that standalone homes are becoming increasingly unaffordable or geographically inaccessible for most first-time buyers, especially in capital cities. 'A key driver of recent movements has been the increased value of non-residential projects rather than the number,' Rossi explained. The numbers land amid calls for bold federal and state intervention to fast-track housing construction and cut red tape for medium- and high-density developments — reforms that housing experts argue are long overdue. 'Data confirms the federal government's failure on housing, as new housing approvals slip further behind National Housing Accord targets. The Accord has failed to deliver the level of new houses promised for the tenth consecutive month,' said Morgan Begg, Director of Research at the Institute of Public Affairs. 'Over the first ten months of the federal government's Accord, housing approvals have failed to hit a single target and are now 27 per cent behind where they were promised to be,' Mr Begg said. 'With housing approvals so low, Australia is being set up for a disaster, as in the last three years to June 2025, net migration is on track to be 1.3 million, meaning the gap between demand and supply is drifting further apart. 'Today's new figures reinforce the depth of Australia's housing crisis, brought about by out-of-control migration, a construction sector burdened by red tape, and competition for resources from large, expensive, and inefficient taxpayer-funded construction projects.' But it gets even worse. The IPA claims the time it takes to build a house, from approval to completion, has increased by a whopping 50 per cent over the last 10 years. It has shifted from an average of just over eight months in 2014 to almost 13 months by 2024. 'The federal government clearly does not understand Australia's housing market. It has overestimated the capacity to build new homes, while it has continually underestimated its migration intake forecasts,' Mr Begg said. 'It has created the perfect storm of rising prices and rents in the housing market that has put the great Australian dream of homeownership out of reach.'
Yahoo
14-05-2025
- Business
- Yahoo
Family embrace $1,200 property shift many Aussies are reluctant to accept: 'Taken care of'
A Sydney mum-of-two has shared how she and her husband got into the pricey property market by embracing a growing housing trend. The Great Australian Dream used to be owning a house with a big backyard and Hills Hoist. But that has become a thing of the past for many families, with more turning to apartment living. Some revile the lack of space that comes with high-density living — something that's more commonplace in Europe or Asia. However, Liliana Rubiano told Yahoo Finance it's been the perfect move for her family-of-four, who have been lived in three different apartment in their Chippendale building over last 11 years. RELATED Rent tactic allows Aussie to buy $435,000 property with tiny deposit: 'Ground-breaking' Retirement warning as controversial $3 million superannuation tax change looms: 'Be proactive' Photo of huge lines expose $51 billion Gen Z trend sweeping Australia: 'Reaping the reward' 'We are very happy. It has 24/7 security, it has a concierge, it has a nice 25 metre swimming pool outdoors, it has a spa which is heated, it has a beautiful gym,' Rubiano said. 'The strata fees are very, very expensive, but I'm happy to pay for them because of all the facilities.' Rubiano and her husband, Fernando Mora, started off renting a one-bedroom in the building. In 2022, they purchased their first home — an apartment on another level for $605,000. It's something Rubiano said wouldn't have been possible if they had opted for a house. 'They are much, much more expensive, at least where we would like to live in the city,' she said. When their family expanded with the birth of their second child, they needed more space but didn't want to leave their building. Instead, they rented theirs out for $750 and moved into a $1,200 two-bedroom apartment, which is just under 80 square metres. Rubiano said the rental income was covering the couple's mortgage repayments, but not strata fees, which are $8,000 a year. The move was an adjustment for the 37-year-old who had previously lived in a three-storey house in Colombia. 'I learned to become a minimalist when I moved here. In Colombia, we have a saying that human beings are animals that get used to things,' she said. 'That is pretty much true because you become a minimalist and learn to live in a small place. When I get one pair of shoes, I get rid of another pair.' Rubiano is one of many Aussies who are turning to apartments over houses. The 2021 census found more than 2.5 million people, or 10.3 per cent of the population, now live in apartments. The number of occupied apartments has increased by nearly 60 per cent since 2006, with the rate of growth outpacing housing. Nearly one in five family households in Sydney lived in an apartment, compared to one in 20 in Brisbane and Melbourne. In Sydney, the median house price is $1,470,625, while in Melbourne it is $917,616 and in Brisbane $977,575, according to Cotality, formerly known as CoreLogic. Ray White director of projects and developments Tim Abbott said he had seen the shift towards apartment living over the last decade from first-home buyers, families and downsizers alike. 'A lot of it comes down to convenience and maintenance. We're seeing some families that are quite happy with a busy lifestyle and want to be close to the city,' he told Yahoo Finance. 'They don't have the time that they once did to be doing the gardening each weekend and maintaining a house. 'So having a good-sized apartment where the maintenance is taken care of by the strata rather than themselves, particularly in developments where there are good garden areas, good outdoor areas and cafes and restaurants around.' Abbott said two-bedroom apartments in particular were often attractive for first-home buyers from an affordability standpoint. Developers are taking note of the shift, too, with Abbott noting a shift towards creating more spacious apartment blocks, catering to families. Willoughby Grounds, a project Abbott is involved with on Sydney's lower north shore, for example, has been built with a dedicated playground, four-bedroom apartments and intends to cater to families who can no longer afford freestanding homes in the area. 'Developers are understanding what people are looking for and designing apartments to fit that need,' Abbott said. Rubiano said living in an apartment was the right move for her family and their current lifestyle. Her husband works in project management in Barangoo and can cycle, run or walk to the office. Rubiano runs her own small business, boardshort company Tolu, and utilises the apartment building's storage space to store her products. 'We have a Woolworths downstairs, we have a pharmacy, liquor shop, medical centre, massage, restaurants,' she said. While the strata fees are expensive and she misses not having space outside for her kids to play, Rubiano said the positives outweigh the downsides and she doesn't plan to go back to living in a house. "The pros at this stage in our life are more than the cons," she said. 'When [the kids] are bigger, they will want their own spaces then we will have to look for an alternative with a little bit more space. 'But I would still prefer to live in an apartment rather than a house because of the maintenance and the cost of maintaining a house and the stress and the clutter.'
News.com.au
13-05-2025
- Politics
- News.com.au
Sussan Ley a ‘unique opportunity' for Liberal Party, VP says
Sussan Ley is a 'really unique opportunity' for the Liberal Party to embody the 'Australian dream' and 'rebuild around that' after the crushing defeat at the federal election, one of the party's most senior women says. Liberals on Tuesday elected Ms Ley to succeed Peter Dutton as leader after he was dramatically unseated on May 3. Ms Ley's election came after a week-and-a-half of 'soul-searching' and a bruising leadership contest between herself and Angus Taylor. Federal vice-president Fiona Scott said on Wednesday she expected the Liberal Party would 'rally behind' their new leader and deputy, Ted O'Brien. 'What I think we will see is the Liberal Party will rally behind Sussan and Ted (O'Brien),' she told the ABC. 'It doesn't mean that great talents in our party like Angus (Taylor) won't still provide superb input – same as Jacinta (Nampijinpa Price) – and it's good to have that diversity of perspective and view. 'But right now, I think the party room did make the right decision yesterday, and it's really important on us that we've been given the opportunity, maybe taking kicking and screaming to have to rebuild the party and take it back to basics and move forward from there. 'And I think Sussan is a step forward to say that we have listened.' Reflecting on the election loss, Ms Scott said there were 'a range of challenges' but echoed the sentiments of many Liberal MPs that the 'Australian public didn't see themselves in us in this election'.
