Housing Industry News – March 2022
March 2022
We are approaching the end of the first quarter of the year with Australia’s borders reopening and positive growth continuing in the property market.
Melbourne house prices jump 35 per cent in less than three years
We have seen Melbourne’s median house price rise above $1.1 million in December 2021, with strong price growth due to low and falling interest rates. This has enabled easier access to home loans and a desire for bigger and newer homes due to the pandemic. There are more homes under construction at present than in any previous cycle and this will continue to grow with buyers purchasing free-standing homes. This is evident with house prices increasing 35 per cent in less than three years, with the past 12 months gaining 18.6 per cent. Hence, this has continued to encourage investors to enter the market. It is evident that house prices have largely been rising since 2019, with the property market continuing to stay consistent and strong. [1]
The return of overseas arrivals
As Australia’s borders reopen to overseas arrivals, it is predicted that the property market could see further growth. This is supported by the growth the market saw in November 2021, when travel restrictions were eased for fully vaccinated Australian citizens and permanent residents and buyers wanted to settle back in Australia to secure their dream home. Ms Eliza Owens, Head of Research at CoreLogic reports that the border reopening will impact the property market in different ways. Ms Owen states that there will be an increase in demand for short term accommodation by lifting occupancy rates and revenue across the short term accommodation rental market. Ms Owens further mentions that most new migrants in Australia experience a tenure cycle which begins with renting and shared accommodation and eventually shifts to home ownership. Furthermore, there had been a relatively high portion of student visa entrants in recent months whereby these students were prioritised to coincide with the February and March 2022 intake of Australian universities. [2]
Social Housing Tax
Victoria has removed the 1.75 per cent levy on new developments that was vocally opposed by the industry. Treasurer Tim Pallas advised the government would remove both the levy and plans to allow developers of large projects to bypass local governments. He further notes that “…these matters are finished, and they will never be revisited by this government, now or at any time in the future...” Additionally, developers have advised that the cost of more social housing development should be shared across the wider community, rather than home buyers who were already facing affordability constraints. The revoked decision regarding this proposed levy is a win for new home buyers. [3]
?John Goris
领英推荐
Director and CEO?
References:
1.???????The Age – [ONLINE] 12/02/2022
2.???????ABC News – [ONLINE] 25/02/2022
3.???????Australian Financial Review – [ONLINE] 01/03/2022