“Changes to existing capital gains tax and negative gearing arrangements on residential investment properties proposed by the Federal Opposition will dampen first home buyer capacity to save for their first home,” stated HIA’s Managing Director, Graham Wolfe.
Residential property prices fell 2.4 per cent in the December quarter 2018, according to figures released by the Australian Bureau of Statistics (ABS).
“The amount of credit provided to housing investors in January 2019 was lower than in any month since 2011,” said Master Builders Australia’s Chief Economist, Shane Garrett.
“Lending for the purchase of a new home slowed rapidly in the last quarter of 2018 and data released shows that the speed of this decline accelerated in January 2019,” said Tim Reardon, HIA’s Chief Economist.
“The number of approvals for new home building started 2019 on a positive note with an increase of 2.5% during January (2019) in seasonally-adjusted terms,” according to Master Builders Australia’s Chief Economist Shane Garrett.
“The decline in expenditure on residential building became a stronger headwind for economic growth in the final quarter of 2018,” said Geordan Murray, HIA Senior Economist.
“Building approvals rose in January (2019) offsetting some of the significant drop experienced in December 2018 as the impact of the credit squeeze continued to affect the housing market,” said Tim Reardon, HIA’s Chief Economist.
“The 2018 calendar year set a record for residential building activity but the amount of building work being done by the industry is now slowing,” said Geordan Murray, HIA Senior Economist.
The ALP’s proposed changes to taxation arrangements for investment property won’t stimulate investment in new housing as assumed and will lead to a fall in demand for all residential property types according to a survey of current and prospective property investors.
The Property Council of Australia has welcomed the announcement that the Victorian Government will release an additional fifty thousand housing lots in Melbourne’s growth corridors but warns that these new communities must be properly planned, and accompanied by appropriate infrastructure and services from the outset.