It’s time for governments to invest in housing
New data shows a softer market and 'when confidence falls, fewer projects stack up and fewer homes get built'.
THE Property Council of Australia is calling on the government to “back investment and remove barriers” if the country’s housing malaise has any chance to improve.
The Council said Australia’s housing supply challenge is deepening as weakening market confidence and falling approvals raise questions about the nation’s ability to deliver its housing targets.
New ABS data shows total dwelling approvals fell 3.6 per cent in July to 17,687.
Private sector house approvals fell 4.2 per cent to 10,199, while private sector dwellings excluding houses fell 0.4 per cent to 7,119. The value of total residential buildings also fell 4.9 per cent to $11.26 billion.
Separately, housing market data released by Cotality and Realestate.com.au points to a softer and less confident market, highlighting growing pressure on the housing pipeline at a time when governments should be focused on rebuilding confidence and lifting supply.
Matthew Kandelaars, Property Council group executive policy and advocacy, said the housing system could not afford further policy uncertainty.
“Today’s approvals data reinforces what the market is already making crystal clear: confidence is weakening and the housing pipeline is under significant pressure,” Kandelaars said.
“When confidence falls, fewer projects stack up and fewer homes get built.
“At the very time Australia needs more housing investment, the Federal Government is considering a trust tax that will hurt housing delivery even more.
“Family-owned and mid-tier builders do much of the heavy lifting on housing supply.
“The proposed trust tax risks hitting exactly those businesses the government is relying on to help deliver 1.2 million homes.”
Kandelaars said the data is a reminder that confidence matters and Australia will not improve affordability by making housing investment less attractive.
“If governments want more homes, they need to improve feasibility, back investment and remove barriers to supply, not create new ones,” he added.
