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The latest study from ANZ and Property Council showed heightened interest from property professionals for governments to tackle supply and affordability issues.
According to the study, 41% of property professionals would like to see federal and state governments to prioritise policies that would address concerns on housing supply and affordability.
This was the highest share since of property professionals citing the two concerns as priority since the survey started in 2019.
Property Council chief executive Mike Zorbas said property professionals are recognising how the current situation calls for urgent action by governments of all levels.
“Governments can move the housing supply needle by twinning planning reforms with the right investment conditions to support more housing choice for Australians,” he said.
According to the National Housing Finance and Investment Corporation (NHFIC)’s State of the Nation’s Housing report for 2022-23, the gap between supply and household formation has widened in recent years due to the deterioration in the supply outlook.
In fact, an expected shortfall of 79,000 dwellings is expected in the next 10 years from 2023 to 2033.
Mr Zorbas said one option is to boost retirement living communities and purpose-built student accommodation.
“These forms of customer-led community provide advantages for residents that are not available in the broader market, including superior amenities and services,” he said.
Focusing on build-to-rent is also a strategic move.
In fact, a recent study commissioned by the Property Council of Australia found that supporting build-to-rent housing by levelling the investment playing field can help deliver 150,000 homes and address Australia’s housing affordability challenges.
“These results also highlight the urgent need for the Senate to pass all of the Australian Government’s legislative agenda on housing to start reining in the worsening supply crisis,” Mr Zorbas said.
ANZ senior economist Felicity Emmett said while concerns about supply and affordability continue to rise, the overall sentiment towards residential property has also improved.
“Higher interest rates and a weak economic outlook are clear headwinds to confidence, but strong immigration and low levels of listings are supporting housing prices and residential sentiment more broadly,” she said.
There are, however, concerns on finance availability, which is expected to deteriorate.
“Concerns about access to finance are likely driven by ongoing financial difficulties in the construction sector, as well as worries about credit tightening in the wake of the banking sector ructions in the US and Europe,” Ms Emmet said.
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
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6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 70% | Featured Online ExclusiveUp to $4k cashback |
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5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% |
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6.14% p.a. | 6.16% p.a. | $2,434 | Principal & Interest | Variable | $0 | $250 | 60% |
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5.95% p.a. | 5.95% p.a. | $2,385 | Principal & Interest | Variable | $0 | $0 | 90% | |||||||||||
5.94% p.a. | 5.95% p.a. | $2,383 | Principal & Interest | Variable | $0 | $0 | 90% |
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