Who is going to finance homes now?

THE Property Council of Australia has called on the Federal Government to explain who will finance new homes if investors retreat, following a sharp fall in investor lending.  

Australian Bureau of Statistics figures released this week show the number of new investor housing loan commitments fell 30.6 per cent in the September quarter, while their value dropped 32.3 per cent, in seasonally adjusted terms.  

Property Council chief executive Mike Zorbas said the figures raised serious questions about the funding needed to deliver more homes.  

“Tell ‘em they’re dreaming. Who does the Albanese Government think is going to finance new home construction, including the rental homes Australians need?”  Zorbas said.  

“Investors account for around half of buyers in new apartment projects.

"Their off-the-plan purchases help developers secure the construction finance needed to get homes built."

Zorbas said without enough pre-sales, an apartment project fails to secure finance.

"That puts the entire development at risk, including the homes first homebuyers and other owner-occupiers want to buy," he added.

“Is the Government planning to step in and underwrite projects that cannot secure finance? 

"A foolish political deal has already seen SMSF investors in rental homes get the boot, and now the rest of the market is suffering.  

“The government must fix its CGT, negative gearing and trust tax changes to support investment in new housing.”