Murray McCarthy Buyers Agent’s Post

A rezoning blitz is needed to radically move the dial on the current housing crisis. The Business Council of Australia (BCA) has called on governments to undergo an extensive program of land rezoning across major cities and towns, to allow medium and high-density development in the vicinity of infrastructure and services. BCA Chief Executive Bran Black said zoning reforms were imperative to address housing supply. “As it stands, based on current construction rates, Australia will not be able to meet the targeted 1.2 million new dwellings under the National Housing Accord over the next five years,” Mr Black said. He said ABS data for dwelling completions over the 2023-24 financial year showed around 176,000 new dwellings built, falling around 64,000 homes short of what would be needed each year going forward. “We need state and territory governments to unlock more land for more homes in cities and towns across Australia so we can fix this supply crisis.” Mr Black said there was also a need for a transparent process for home builders to put forward proposals to boost housing supply, through rezoning, managed by state government and consolidated zoning types that were broad and consistent across entire states, providing clarity for home builders. “These changes need to allow for greater density and height near good transport services, while at the same time protecting the quality of life, green space and heritage of an area.” “Put simply, we need to build enough homes where people want to live, so until we fix that problem, it will be very hard to hit our housing targets. Building a home in the right place is as important as building it at all.” Mr Black said that across the Tasman in New Zealand, Auckland was an excellent example of how rezoning changes have been successful in improving supply and ultimately lowering price pressures. “In 2016, Auckland rezoned about three quarters of residential land, and a massive increase in home building followed. “They’ve now shared a report showing that this has contained the cost of housing in the long run, approving affordability, with rents at least 26 per cent below what they would have been without the rezoning, and a stabilisation of long-term dwelling prices” Mr Black said. https://lnkd.in/gqDHrQqw #housing #property #zoning Sign-up to the free biweekly Newsreel newsletter: https://lnkd.in/gDGxznVv #newsreel

The Housing Dilemma: Why Property Prices Keep Rising in Australia In Australia, one of the primary factors driving the continuous rise in property prices is the inadequate supply of houses. Housing construction has plummeted to its lowest level in 11 years, and leading indicators such as finance commitments suggest that this downward trend is likely to persist. So, why aren't we building more houses to address this shortage? The unfortunate reality is that the remedy for escalating prices is even higher prices, which poses a significant challenge for first home buyers. Property prices must reach certain thresholds before many construction projects become financially viable. For instance, in Perth, numerous high-rise development initiatives have received council approval but remain unfeasible at current price levels. Developers assert that prices need to increase by at least $100,000 to make these projects economically viable. According to Tanya Steinbeck, the Chief Executive of the Urban Development Institute of Australia WA, construction costs and labor shortages are hindering new projects in Perth. Despite the approval of numerous apartment projects representing around 2000 homes, these developments are stalled due to prohibitive construction costs. The situation worsened as a large number of tradespeople left Perth in pursuit of better pay before the onset of COVID-19. The subsequent surge in demand, coupled with a depleted workforce and supply chain disruptions, led to extensive delays in construction timelines, stretching from six months to three or four years. This scenario is not unique to Perth; rising construction costs have pushed the breakeven point for new builds to unprecedented levels nationwide. Until property prices align with construction costs, many development projects simply won't be financially viable. As a result, we observe significant activity at the top end of the property market, while the lower end, where new stock could make a substantial difference, remains stagnant. Even in affluent areas like Perth's western suburbs, where projects are currently profitable, nearby neighborhoods such as Victoria Park, with immense potential for high-density development, are neglected due to financial constraints. According to industry experts, developers are awaiting substantial increases in property values before initiating projects in these areas. The prevailing sentiment among developers across the country echoes similar challenges. Until property prices rise to meet construction costs, the supply response in the market will remain limited, perpetuating the housing shortage and sustaining higher prices. #HousingCrisis #PropertyPrices #RealEstate #AustralianProperty #ConstructionIndustry

Good Afternoon LI! The article below highlights how far behind Brisbane is falling in terms of housing for it's ever-growing population. Housing is a major issue Brisbane (and Australia in general) is facing. According to the Government, Brisbane requires an additional 7,500 attached dwellings constructed each year to keep up with projected population growth. Between 2020 and 2023, we delivered less than 2,000 apartments each year. Even though we are due to expect more dwellings in 2024 (just under 3,000), we are still well and truly short of our required targets. The concerning figure is that this number is set to drop to less than 1,500 in 2025. This lack of supply will increase house prices and also result in tenants paying more in rent. This is highly concerning considering the stress that the general population is already experiencing with the cost of living crisis. Incentives need to be put into place to encourage more developers to build high density developments here in SEQ. Let me know your thoughts below. #Hays #Construction #Recruitment #CostOfLiving #Housing #Apartments

As Canadians look for alternative housing options – and existing homeowners seek ways to balance the increased costs of ownership – basement apartments represent a practical solution. https://bit.ly/4ewPCd4

𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮𝗻 #apartments 𝘄𝗶𝗹𝗹 𝗿𝗲𝗺𝗮𝗶𝗻 𝗮 𝗻𝗶𝗰𝗵𝗲, 𝗹𝗼𝘄-𝘃𝗼𝗹𝘂𝗺𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗳𝗼𝗿𝗲𝘀𝗲𝗲𝗮𝗯𝗹𝗲 𝗳𝘂𝘁𝘂𝗿𝗲. Why? They are too costly to develop to meet the financial capacity of most homebuyers to be #feasible for developers, and investors are mostly avoiding them. Projects continue to pivot to the higher end owner-occupier at the downsizer or wealthier lifestyle market. 🎯Whilst apartments can be a great option for those who have the capacity to purchase and enjoy the lifestyle benefits, they won't meaningfully contribute to the #housingaccord 1.2m new dwelling targets. To shift the dial on new apartment supply you would need state governments to: ✅ Reduce stamp duties for off-the-plan purchases ✅ Reduce or remove taxes, charges and contributions ✅ Provide incentives or stimulus None of which are likely options for most States given their budgetary situations. 📋And you would need substantial #planningreform which only 𝘳𝘦𝘮𝘰𝘷𝘦𝘴 barriers to development - not the 𝘲𝘶𝘪𝘥 𝘱𝘳𝘰 𝘲𝘶𝘰 approach planning departments like to take. #BTR delivers essentially the polar opposite of the owner occupier housing, mostly with smaller units but still generally at a premium rental. They deliver very few 2 and 3 bedroom dwellings as a proportion of the whole. 🏢(Relative) record low apartment approvals now translate to record low completions in 2-3 years time; right in the middle of the various #housingtarget periods. Those numbers are not looking good anywhere. 🤔Has anyone heard of an apartment development flipping the other way (i.e. increasing yield) in the last while? Via The Australian Financial Review and Michael Bleby: https://lnkd.in/giH5e8yD UDIA National UDIA Queensland UDIA Victoria UDIA NSW

Sensible though still innovative and yes bold stuff from the Victorian Government Big Build statement. They intend buying unsold stock meant for the private market from developers to become social lettings - as I've always argued for. We did this via the Homes and Communities Agencu (now Homes England in 2009/10 when lots of developers were struggling to sell their homes). I like :- The Government will : 'Buy off-the-plan to boost social housing stock. Developers need a certain level of apartment pre-sales before a housing project can commence construction – which can often add delays to new projects kicking off. We’ll explore opportunities to buy pre-sale off-the-plan apartments in medium and high density developments to boost Victoria’s social housing stock. We’ll consult with industry on opportunities to buy at scale through spot purchasing. And we’ll buy directly from project proponents, making sure we don’t reduce stock in the market. Also, the Government may headlease leftover apartments :'When a development project is finished, there are often a small number of units that don’t end up being sold or leased. This means there could be as many as several thousand apartments left empty right now that could make a home for someone. Industry feedback suggests there may be opportunities for long-term headleases of these leftover apartments at social housing rental rates to support families who need social and affordable housing. We’ll call for expressions of interest to test market appetite to add some of these apartments to our supply of social and affordable housing and help reduce the waiting list'. #housing Patrick Fensham Scott Langford

The landscape of Australian housing is evolving with fascinating trends that reflect the changing preferences and challenges of today's market. Among these, we're seeing a notable shift towards owner-residency over investment in new housing loans, with a clear preference for existing homes among investors. Detached houses are rising in popularity at a pace that far exceeds that of attached dwellings, with townhouses leading the way in new construction for those seeking a blend of community and privacy. However, the journey to expanding our cities vertically with apartment complexes is met with significant barriers. High construction costs, rising interest rates, and a tight labour market, compounded by planning delays, are reshaping the development landscape. Melbourne is setting its sights on becoming a rental haven, advocating for policies that encourage less dwelling and car ownership in favor of increased rental options. This vision presents a unique set of opportunities and challenges within the rental market segment. Meanwhile, Western Australia is pioneering with relaxed planning laws, allowing homeowners to easily add small secondary homes on their properties. This innovative approach aims to address housing supply concerns in a practical and efficient manner.

On the surface, an ambitious plan passed by City of Toronto council to support the #construction of 20,000 new rental homes seems reasonable, but a deeper dive shows it is an overly ambitious undertaking, RESCON president Richard Lyall writes in Canadian Real Estate Wealth. “To build the full 20,000 units, Toronto requires that the province come to the table with $1 billion in funding via a Build More Homes rebate and the federal government kick in $7.3-billion,” he states. “It is highly unlikely that the province and feds will cough up $8.3 billion in funding for the project.” #housingsupplycrisis #development #housingmarket #cdnpoli #onpoli #topoli Abi Coote Sandev Varaich

Density in City of Perth We hear all about increasing density and if this is going to happen, we must boost housing supply. The idea of living in a city centre is all about lifestyle and there are many benefits to living here. Maybe a glimpse into our future will include efficient and sustainable urban developments, a mix of smaller homes, that are faster and less expensive to build & still great quality, focusing more on location, than size, combining living, working and leisure in one location   Build to Rent Maybe dedicated “build-to-rent” homes that offer people flexibility, security and independence to live, that is just like owning a property, could be an new option for renters, with longer, maybe up to 3  or 5 year lease options, would help people feel more secure and at “home” knowing in advance that there won’t be a rent hike next year that forces them to move out, offering more permanency without owning Renters People have their own priorities, some are economic because of the cost of living, so reducing the financial strain in terms of deposits & mortgages is a good thing or they just don’t want to buy yet and are happy to rent, people want to be part of what our city has to offer, working, going out to eat, its lifestyle!   Architects & Builders Builders will build & people will buy, some to live in, others as investments to rent out, but dedicated “build-to-rent” gives us another option. In our future, leaning into architecture & creatives in this field to create new concepts in development, buildings that are created in a way that suits our Western Australian climate, with a strong focus on sustainable construction, energy efficiency and modern living and working.   Investors It is a challenge to offer affordable rents in the sector without government support, the cost of construction is prohibitive, so to do this, our city will need to work with government and builders Investors must get a return, this is not a charity, it’s an idea to ease the burden on renters & give them an alternative to buying @cityofperth