Housing affordability ‘not on agenda’ for Government

Date: 16 May 2017
Housing affordability ‘not on agenda’ for Government
The Victorian Government’s decision to abolish the Stamp Duty concession for ‘off the plan’ sales from 1 July 2017 will slow the supply of new dwellings, and create a significant downturn for the construction sector as a whole, according to Jonathan Walls, First National Commercial’s National Commercial Manager.
‘The Government’s initiatives, combined with APRA’s directives to the banks in relation to investor and overseas purchasers, is sure to have a huge impact on the sector’ said Mr Walls.
‘If developers are unable to pre-sell apartments, construction will slow - seriously affecting the supply of new housing. Some may think this a good thing but demand for existing dwellings will increase, putting further pressure on property prices in the immediate future. Whilst this does nothing for housing affordability, it could however shield the housing sector from a predicted slow down or correction’.
Mr Walls believes that neither banks nor Government want to see declines in house prices.
‘Current policies appear to be more about preserving values and “steady as she goes” than a genuine attempt to address housing affordability. Salary sacrifice tax deductions could help first homebuyers to save a deposit faster, without the risk of further inflating property prices’.
The Australian housing market remains as buoyant as ever (WA excepted) and further prices growth is anticipated across most states throughout 2017.
Back to articles Filed under: Media / National|WA|NSW|QLD|ACT|VIC|NT|TAS|SA News Tags: abolish, affordability, apra, commercial, commercial manager, construction, deposit, developers, first homebuyers, first national, house prices, housing, investor, jonathan walls, property, salary sacrifice, stamp duty, victoria, victorian government
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