Peak body meets with government leaders to address supply, affordability concern
The Real Estate Institute of Australia stressed the importance of the nation’s $9 trillion residential real estate market to both the Morrison government and the Opposition during REIA’s annual advocacy tour.
“We had very productive meetings with Minister for Housing Michael Sukkar MP to discuss how to increase homeownership, address housing affordability concerns,” said REIA president Hayden Groves. “When meeting the chair of the Standing Committee on Tax and Revenue, Jason Falinski, discussion focused on the importance of unlocking further housing supply in this phase of the COVID-19 pandemic. We also met with the shadow treasurer, Dr Jim Chalmers, and shadow housing minister, the Hon Jason Clare MP, on key issues affecting the housing market.”
The number of first-home buyers fell by 12.6% over the September quarter of 2021 thanks to fears of rising interest rates, rising cost of living and a lack of listings driving prices up in capital cities, REIA said.
However, Groves said it was positive that for the first time in six years, negative gearing and capital gains tax settings would go into a federal election with support from both major parties.
“The lead-up to federal election periods are usually a time when Australians have less confidence to offer their properties for sale or enter into any new property transactions,” he said. “With no changes to negative gearing or CGT proposed by either party, Australians should list, buy and rent with confidence.”
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Groves said that with May 21 the latest possible date to hold a federal election, it was critical for REIA to meet with leaders to discuss the issues affecting the housing market.
“Residential real estate is the largest place where Australians’ wealth is stored, and this is obviously a critical issue every federal election,” he said.
Groves said that with inflationary measures rising and house prices still growing, the housing market needs to be front and centre in government decision-making.
“Average loan sizes have increased to $570,000, while the weighted average median house price for the eight capital cities increased to $961,059 over the year to September 2021,” he said.
Groves said REIA was particularly supportive of the government’s First Home Loan Deposit Scheme, which has so far helped 60,000 Australians buy their first home.
