- Property prices have risen across much of the country at rates not seen since the 1980s
- New developments and stamp duty reform have also skyrocketed
- HomeBuilder and concerns surrounding housing affordability have been raised
From rising property prices to the end of HomeBuilder and other stimulus packages, to calls for reform, housing affordability concerns for buyers and renters alike, it is safe to say it has been an interesting time.
Property prices soar
The Harbour City continues to rise and rise: over the past six months, asking property prices have risen from $1.3 million to $1.56 million. In fact, sellers are often hiking asking prices mid-campaign.
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And they’ve been rising since the last quarter of 2020, with the easing of the pandemic (did we speak too soon?), economic recovery and historically low interest rates of 0.1%.
The value of residential property reached over $8.2 trillion in June, reflecting an increase of $450 billion during the March quarter alone.
HomeBuilder is no more
The program has been a massive boon for the economy, with the Masters Builders Association (MBA) estimating that it has added $50 billion to the economy. It’s a far cry from this time last year, when the industry had stalled, and people were calling for government support to prevent doomsday. To their credit, the government acted swiftly.
In April, with eager home builders not able to get hold of a builder for love nor money, the HomeBuilder construction deadline was increased from six months to 18.
In April, we reported that 9 in 10 Australians believed property was becoming ‘unaffordable’ with just over a quarter of respondents adding they are currently under mortgage stress.
In some good news, social housing stock is up – but not enough. The $5.3 billion Big Housing Build is a program hoping to improve the levels of stock in Victoria which has the lowest level of social housing per capita.
New residential developments remain popular.
Despite many buyers opting for larger houses as opposed to units or apartments, off-the-plan apartments were still sought after. A good example of this was on the Gold Coast – we have published over 40 stories about some apartment or another reaching near-record high levels – such as a penthouse in Coolangatta that sold for $8.15 million in May.
Reform continued to gain momentum – most notably by giving buyers the opportunity to opt-in for an annual tax in lieu of stamp duty.
Thanks to the housing boom, state and territory government have seen their revenues grow – New South Wales, for example, collected $6.2 billion in the year-to-February.
Tim McKibbin, CEO of the Real Estate Institute of New South Wales (REINSW) has been pushing for further reform in the property arena such as adopting a Property Services Commissioner and reform planning systems.