supply

Australia doesn’t have a tax problem

Australia doesn’t have a tax problem – It has a housing supply problem The wrong target Australia’s housing debate has become obsessed with tax policy. Negative gearing.Capital gains tax.Investor incentives. But these policies sit around the edges of the real issue. Australia does not primarily have a tax problem. It has a supply problem. The real drivers of housing costs Housing affordability has been driven by:– underbuilding– population growth– planning delays– infrastructure lag– labour shortages– rising construction costs These are structural constraints that tax changes alone cannot fix. Investors are not the core cause The idea that investors are the […]

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This housing policy could push property prices higher

By Kate Hill

This housing policy could push property prices higher The Great Housing Contradiction The government says these housing policies are designed to improve affordability. But there’s a very real possibility they could push property prices even higher over time. Because when you strip away the politics, Australia still has the same underlying problem it had before the budget: Not enough housing supply. Investors are already stepping back The assumption behind the policy changes is that investors will simply redirect into newly built housing. But real-world investor behaviour rarely works that neatly. Many investors will not redirect. They will pause.Delay purchasing.Or step

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Supply and demand and its impact on property prices

By Kate Hill

The principle of supply and demand is a cornerstone of economic theory, dictating the behaviour of markets, including real estate. In essence, this principle theorises that the price of a good, including property, is determined by the balance between its availability (supply) and the desire of consumers to purchase it (demand). How supply and demand affect property prices Here are some different supply and demand ratios and their effects of property prices. High Demand, Low Supply: When there are more buyers than available properties, prices increase. This scenario often occurs in urban areas with limited space for new developments. Low

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Low property stock levels drive markets in Australia

By Kate Hill

Australia’s property market is facing a significant challenge: a notable decline in property stock levels. According to recent data, the number of homes available for purchase or rent has drastically decreased, intensifying the housing crisis. Treasury officials emphasize that this shortage makes it increasingly difficult for individuals to find suitable properties. Source: ABC, Australia’s housing crisis in 10 graphs, from the federal budget, 15 May 2024. The total value of residential dwellings in Australia has risen dramatically, and this surge is partly due to the low stock levels. Meanwhile, housing prices continue to escalate, as highlighted by the Australian Property Market analysis

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Australia doesn’t have a tax problem

This housing policy could push property prices higher

Supply and demand and its impact on property prices

Low property stock levels drive markets in Australia

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