REIA LAUNCHES ‘AUSTRALIAN PROPERTY: OUR FUTURE’ TO ADDRESS KEY ISSUES FACING THE INDUSTRY
Property buyers are bucking the traditional pre-election market slowdown, driven by bipartisan support for negative gearing and investor lending at record highs.
This unprecedented level of bipartisanship for a more stable and supportive taxation environment was championed by the Real Estate Institute of Australia (REIA), which resulted in both major parties guaranteeing their support of negative gearing for the first time since 2013.
With continued strong buyer interest ahead of the 2022 Federal Election in May, REIA has today launched its new ‘Australian Property: Our Future’ campaign to bring the dream of home ownership one step closer.
REIA President, Mr Hayden Groves said Australians are enjoying an ideal policy backdrop to support those wanting to buy or invest in property, with bipartisan support for negative gearing providing buyers with a stable environment and peace of mind.
“Buyers are backing Australia’s housing market, with total investor loan commitments of $10.8bn in February sitting just under the record loan commitments we saw in January 2022.
“While it’s a very different market to the pre-election softening in the lead-up to the 2019 Federal Election, where uncertainty around negative gearing led to a major drop in investor confidence, rising stamp duty taxes continue to be prohibitive for owner occupiers,” he said.
Mr Groves said the REIA campaign will highlight the benefits of home ownership, with recent commitments announced in the Federal Budget creating an opportune time for Australians to buy or sell with confidence.
“These commitments comprise 50,000 new places for the First Home Loan Deposit Scheme, which include 35,000 places for first home buyers over 2022- 2023 to improve supply and affordability.
Mr Groves said the Federal Government handed down a Budget for the times and in a win for home buyers, housing was at the heart of it. It was a reassuring Budget for home ownership as it dealt directly with inflationary pressures, contained a modest outlook for interest rates, and supported first home buyers.
“Home ownership is part of the Australian way of life, with the benefits of buying a home extending well beyond the individual. Home ownership is a long-term game that secures wealth for generations to come.
“Property remains a standout investment for homeowners, with values in 2021 increasing at the highest rate in two decades.
“The estimated 15% of households considering entering the market should feel optimistic about the future of property, with home ownership a clear pathway to reducing hip pocket challenges.”
While policy commitments championed by REIA underpin today’s thriving property market, there is more to be done and the industry must future-proof future generations by addressing housing affordability and supply, while at the same time upskilling its workforce to address the current property manager shortage.
Mr Groves said that in order for the Australian real estate sector to continue to underpin Australia’s prosperity, housing supply must also be tackled in future Budget cycles, including stamp duty reform which could increase the supply of existing housing stock on the market by up to 40%.
