Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Prices continue to rocket in Australia re3gardless of interest rate rises. The Perth property market is critically short of rentals , but hardly alone there.
Meanwhile no action appears likely on those here on short stays being able to purchase properties nor any serious investigation into how funds were acquired. Hence tackling the laundering of overseas funds into the property market.
What are the main impediments to more construction especially denser construction? Supposedly if there are high housing prices, then there should be a lot of demand and thus profit from building more housing, so what are the chief impediments to doing so?
What are the main impediments to more construction especially denser construction? Supposedly if there are high housing prices, then there should be a lot of demand and thus profit from building more housing, so what are the chief impediments to doing so?
A mixture of high interest rates, high input costs, and slow council/community approval processes.
It can take years to go from planning stage to a finished product you can sell. In that time you have to fund the entire project, which is mostly done via debt. The interest rates developers pay are more often than not a good deal higher than you typical secured home loan.
A mixture of high interest rates, high input costs, and slow council/community approval processes.
It can take years to go from planning stage to a finished product you can sell. In that time you have to fund the entire project, which is mostly done via debt. The interest rates developers pay are more often than not a good deal higher than you typical secured home loan.
Should add it looks like actual housing construction is at an all time high (or very close to it), across Australia. All the COVID stimulus packages resulted in a mass of construction which is nearing completion right now. Sydney now has a crane count of just over 400, Melbourne 170 , Brisbane 85, Gold Coast 65 and Perth 50. So lots of high rise construction is happening.
Building approvals for future development's however are a different story.
A mixture of high interest rates, high input costs, and slow council/community approval processes.
It can take years to go from planning stage to a finished product you can sell. In that time you have to fund the entire project, which is mostly done via debt. The interest rates developers pay are more often than not a good deal higher than you typical secured home loan.
Not in developers interests obviously to flood market with supply.
The plan to build 240,000 houses , which equates to 660 houses a day. However Australia has only ever built more than 220,000 houses once, that being in 2017 when it built 223,000.
Average house competition is in the order of 160,000 over a year. That's an 80,000 shortfall.
The major problem not being addressed by political parties and only lightly touched on by media. That being record, un needed immigration growth.
Not in developers interests obviously to flood market with supply.
It absolutely is in their interest and they would if they could. Developers make money from buying a block of land, getting it rezoned and putting higher density residential on the rezoned block. Trust me, if state governments and local councils approved high density rezonings, like every single developer begs them to, developers would make bags of money.
You can't really blame developers for the lack of supply. If you give them permission they (the market) will work out a way to do it profitably.
Now whether anyone wants to live in a city beholden to the profit motive of property developers is another story...
It absolutely is in their interest and they would if they could. Developers make money from buying a block of land, getting it rezoned and putting higher density residential on the rezoned block. Trust me, if state governments and local councils approved high density rezonings, like every single developer begs them to, developers would make bags of money.
You can't really blame developers for the lack of supply. If you give them permission they (the market) will work out a way to do it profitably.
Now whether anyone wants to live in a city beholden to the profit motive of property developers is another story...
I think it goes without saying that if developers would imitate residential living standards in Mumbai or Hong Kong they surely would. Just a question of rezoning to higher density , which often creates public censure so hence a carefully trodden path appears to be taken.
Without doubt high density housing is being fostered onto the public, plus with growing numbers of migrants from high density housing in the countries they moved from, it will increasing likely to occur by default as time passes.
I think developers can be blamed for a lot going wrong. They are pushing the high migration agenda and the industry holds considerable influence within the media and government. Obviously it extends beyond that but this nation has changed for ever over the past decade and a half and with that what was once regarded as 'norms' for Australia as well.
Is now the time to invest in tents? Just how those on low income will get a look into the rental market? So few vacancies affordable for those in that situation.
Is now the time to invest in tents? Just how those on low income will get a look into the rental market? So few vacancies affordable for those in that situation.
It's getting really bad out there and only going to get worse with low new home approvals. Such a lack of supply will keep prices high. Over 30% of Australian homeowners are now in Mortgage stress which is among the worst in the developed world. It seems the soft landing approach is less likely and we are going to experience some real sharp pain soon
It's getting really bad out there and only going to get worse with low new home approvals. Such a lack of supply will keep prices high. Over 30% of Australian homeowners are now in Mortgage stress which is among the worst in the developed world. It seems the soft landing approach is less likely and we are going to experience some real sharp pain soon
I do wonder if another alternative hasn't been found that makes traditional thinking somewhat redundant. I mean house prices continue to rise. First time I recall this occurrence in times of rate rises. Migration remains at record levels, yet the so called skill gaps are not being filled. Meanwhile foreign money is pouring in from countries like China, without checking source of funds. Ideal for Organised Crime to continue their influence in all number of activities in Australia.
Obviously it appears , large numbers of Australians will be seen as colleterial damage either victims of lowering living standards brought on by unaffordable rents, unobtainable rentals, the massive unchecked drug market (will those not involved become 'victims' of their 'scruples' becoming increasingly poorer and marginalised?)
Demand is being artificially created. Return immigration to normal levels of fifteen years or so back. Ensure quality construction is being built and not poor Asian imitation builds. Stop driving living standards towards Argentina levels. Get people into position with values, with the best intentions to serve Australia and not self serving own interests and get people in that will get a grip of the out of control drug trade.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
