Boarding Houses rebadged as Co Living boosting the allocation of ‘Affordable Housing’

NSW INC so far has been very generous with its allocation of 10 percent ‘affordable housing’ (sarcasm intended) so in order to meet this need, and enhance deve-loper and investor wealth …

… Under the cover of Covid … NSW INC, it appears, has been plotting with their deve-loper mates for more end-users for apartments.

With what is known now as ‘affordable housing’ in the form of ‘co-living’ rather than the lable of ‘boarding houses’ they are:

-to be constructed within apartment precincts

-seniors housed in ‘vertical villages’

This is amid a housing shortage and affordability crisis of their creation!

Reported that home ownership for those aged under 35 has halved since 1995!

AUSTRALIA used to have 70 percent home ownership!

WHAT has happened to the Australian Dream? This article seems to infer that co living (the modern day boarding house) is being sought after by Millennials!

That it is desirable … but who in their 30s aspires to a bedroom and sharing common living areas with others at $400 p.w.?

What will be next?  Like that perhaps in Hong Kong, a cage home?

Will you be voting for this at the next NSW and Federal Elections? 

Read more!

https://www.smh.com.au/national/nsw/housing-for-hippies-now-for-hipsters-alternative-plan-to-boost-affordability-20210729-p58e5d.html

Yes, we need a top-level Inquiry into Uncontrolled House Prices

INITIALLY we balked at Jessica Irvine’s suggestion that:

‘ … we used to point the finger at immigrants for causing spiralling property prices, but then we shut the borders for over a year and prices still rose 16 per cent nationally – the fastest rise in at least a quarter of a century? Yeah, me too.’

This she wrote in her article, ‘We need a Top-Level Inquiry into runaway home pricesand Ken Henry’s up for it!’

However, a hurdle not talked about here is that we have ‘a PM for PROPERTY’ … as a former staffer he wrote the policy for the developer lobby group: The Property Council of Australia … and it appears government policies favour deve-lopers somewhat! Our borders were allegedly closed, but not for 15,000 wealthy foreigners given Australian Visas!

Read more!

https://bit.ly/3C6txPF

AND who would Coalition MP Jason Falinski be representing with an inquiry into housing supply?  Cough … cough …

JF:  “Everyone focuses on negative gearing and capital gains tax, but the 800-pound gorilla in the room is supply.”

On the demand side, a common belief in the power of government to step in and change the size and shape of demand for housing, by changing TAX RULES (i.e. Tax Benefits for investors) and (sometimes) curbing immigration.

-with supply inelastic: the time it takes to build new stock

-demand everyone needs a place to live

Q. Why has Home Ownership for those aged under 35 halved since 1995?

A.  John Howard was Prime Minister between 11 March 1996 and 3 December 2007 during which terms permanent migration of 70,000 p.a. was replaced with temporary migration of Visa holders lured by investment in education and real estate to gain ‘flexible citizenship’ particularly Middle Class Chinese; as our real estate became awash with ‘Black Money’, and property prices escalated with a boom in 2004!

Temporary migration numbered hundreds of thousands of people. Prior to the Pandemic there were 2.3 MILLION Visa holders in Australia of which 1.6 MILLION were Visa workers! Many seeking and gaining ‘Permanent Residency’!

At the same time Australians including Millennials (Gen Y) have endured the lowest wages growth!

In a paper titled Housing: Taming the Elephant in the Economy, among the list of demands from those on the Demand side:

*an expansion of the Reserve Bank’s mandate to include “maintaining a more price stable and well-functioning housing market.

AND Hal Pawson a demand-side academic suggested a high-level Treasury review of the ilk of the Ken Henry Tax Review!  Independent of the Government!             

Jessica Irvine:  ‘So, I texted Henry to see if he’s up for it. He replied:

“Jess. Sure. I’d chair such a review. The question is whether we have a government with the courage to commission it. Ken.”

Jessica concluded: ‘Call it an elephant, or call it a gorilla, what’s crystal-clear is that Australia’s growing housing affordability crisis is wreaking havoc on the quality of life of all Australians and it needs to be stopped.’

READ MORE! ‘We need a top-level Inquiry into Runaway Home Prices and Ken Henry’s up for it’

https://www.smh.com.au/business/the-economy/we-need-a-top-level-inquiry-into-runaway-home-prices-and-ken-henry-s-up-for-it-20210802-p58f63.html#comments

GEN X bears the Debt Burden … the Cost of Buying a Home has increased by 130%

MEANWHILE … many GEN Y and Z are locked out

THIS REPORT REVEALS:

-the family home is an expense rather than an asset

IT’S TIME NOW the MORRISON GOVT addressed this!

IN fact the Liables have put the financial security of not only GENS X Y & Z but also 60% of Boomer and Silent Generations at risk … because many have had to re-mortgage, or downsize to release equity; taking on default risk by standing as Guarantor for their first-time buyer families

-in 2010 the proportion was less than five per cent!

-the lowest wages growth since 2013 has worsened the problem  

-high household debt creates the ‘debt overhang effect’ and reduces consumer spending

READ MORE!

The cost of buying a home has increased by 130 per cent over two generations and Generation X is bearing the debt burden

https://www.abc.net.au/news/2021-07-23/house-prices-property-generation-x-household-debt-affordability/100315500

State Significant Approval for Deicorp’s Tallawong Village

LANDCOM Appoints Developer for SYDNEY METRO: Tallawong Station Housing Project
CAAN Photo of the Tallawong Village site 2018/2019

*DEICORP is about to start work on its largest project to date … $332M Tallawong Village after gaining STATE SIGNIFICANT approval for a SEVENTEEN (17)-building development in Sydney’s north-west … next to the Sydney Metro Tallawong Station.

WILL Planning Minister Stokes, having said that, ‘increasing our housing supply …. to provide more opportunities for first home buyers to get into the market’, will he be speaking to the PM to enquire about putting a stop to the FIRB ruling allowing deve-lopers to sell 100% of ‘new homes’ to foreign buyers particularly in China? Or from Hong Kong … Singapore?

-of the 987 homes in Tallawong Village; a mere 50 would be affordable housing

READ MORE!

Deicorp’s $332m Tallawong Village Wins Approval

https://www.theurbandeveloper.com/articles/deicorps-332m-tallawong-village-approved?utm_source=TUD+-+Daily+Briefing&utm_campaign=9221d14d44-EMAIL_CAMPAIGN_6_11_2021_9_36_COPY_01&utm_medium=email&utm_term=0_982c36d415-9221d14d44-195692726

For a little background on Deicorp … no doubt the Building Commissioner will be aware …

In 2020:

https://bit.ly/3rwJ8mN

In 2019:

https://bit.ly/2Tw6ht1

WHY is the Housing Market Insane and Out of Reach for Young Australians?

The exclusive survey, conducted for The Sydney Morning Herald and The Age by research company RESOLVE Strategic,* heard from voters who had attended housing auctions this year, and came away saying “people were in shock” from the surge in prices.

*RESOLVE is a company with strong links to the Liberal Party founded by Mr Reed, a director of CT Group formerly CROSBY TEXTOR

IS the Liberal Party now worried with …

-69% of those surveyed now realize the high house prices cannot be good for Australia

60% of voters saying young people in their area will never be able to buy their own homes

… are they now realizing that the government grants and low interest rates have in fact benefited the banks, developers, home sellers, real estate agents … not buyers hit with escalating house prices?

KEY POINTS WE GLEAN FROM THE COMMENTATORS … have a think about these BECAUSE they make more sense!

-AUSTRALIA is badly exposed to winds of international interest rate moves; interest rates are picking up in the U.S. now clouds on the horizon for mortgagees

your home rises in value; to buy back into the same market even if downsizing the gains are meaningless; in fact likely they disappear!

-it is just MONOPOLY MONEY

‘retirement villages’ don’t just cost a motza to buy into; they cost a fortune in ongoing fees so what you gained from the sale of your home will be eaten up

-this Government are positioning us to make sure that the average person exhausts their ‘wealth’ while still alive through reverse mortgages etc.

-serious action is needed to shift ownership back to owners; not investors

.how about allowing owner-occupiers to make 50% of their mortgage payments out of pre-tax income?

Torrens Title housing and apartments are unaffordable in the eastern suburbs, north and lower north shore suburbs, inner west suburbs due to close proximity to Sydney CBD

-Torrens Title housing in south-west Sydney also has become unaffordable; land releases here have led to loss of our peri urban farmlands (our Sydney Foodbowl), flora and fauna and koala habitat

.with inadequate infrastructure esp. sewerage

-north west Sydney land and house prices also surging despite much of this land being flood prone

-the Liberal Party played to the greed of negative gearing beneficiaries, capital gains discounts and the free from tax retirees (dividend imputation – aka franking credits – free money)

-PM Howard started this with the “first home owner’s grant” of $14,000 that saw house prices rise three times

-the system is rigged by the wealthy who avoid tax and acquire property after property paid for by their tenants; thus making the young and poor subsidise them

-one personal Super Fund (one individual) has more than $560M in Super; no tax!

-regional Australians are also experiencing high housing costs along with costly and scarce rental homes

-the RBA is wilfully pursuing monetary policy which destroys future growth, at little or no benefit to the economy now

we need a new paradigm for home “ownership”. Why should young people looking for shelter and security have to compete with the already rich wanting an investment?

-something is desperately wrong in our economy when non productive assets (housing) attract so much attention and productive assets (a business e.g. in hospitality) are allowed to fail

too many incentives for investors incl. foreign investors with too many decision makers benefiting

-our young people need ‘a Fair Go’; they are the future!

WILL Voters make the connection?

… Imagine if Labor had won the last Federal Election in 2019, and implemented the whole suite of its policies around Housing Affordability?

How different would it be now?

Sadly Labor is not likely to repeat this, and we now have what we have!

A return to the pre-War inequity of Home Ownership

VIEW THE GRAPH; we were not able to copy it!!

https://www.smh.com.au/politics/federal/the-market-is-insane-many-voters-fear-home-ownership-is-out-of-reach-for-young-australians-20210722-p58c57.html?fbclid=IwAR0ObSccld1yNCLa-WNhco8yBoOBeoHRLEJcx0X9MkS70d3IgMlooV4jRoQ#comments

Why wouldn’t 82% of Survey Respondents blame Buyers from China for our High House Prices?

May be an image of 3 people, people standing and outdoors

APART from the very low interest rates, the Morrison Government Grants, and the short supply of housing, pushing up house prices, Australians have witnessed the high immigration from China that arose in the 2000s, and many Australians have been outbid at auctions

WITH more than 80% of Australians knowing that foreign buyer competition particularly from China has driven up house prices … does ‘the Truth hurt’? Namely, those who benefit most?

WHY would Naaman Zhou write in Guardian Australia that ‘More than 80% of Australians mistakenly believe Chinese investors are driving up house prices’?

We suggest the survey and data Naaman Zhou is basing his report in Guardian Australia is now out of date!

Because Monika Tufounder and director of Black Diamondz Property whose clients are mainly Chinese citizens with Australian residency working and living abroad predicts that when the borders open they will flood back in … some are seeking $10M plus homes, but will they be seeking our detached homes with large land lots in green suburbs too?  Hm … .

Not only will they continue to come from China but Singapore, Hong Kong, the United States (Canada too?) and the United Kingdom. 27 of the 29 Sydney properties listed by Black Diamondz sold recently.

Once again the ‘exchange rate’ is in their favour!  With Australian housing more reasonably priced than Japan, London, New York, Beijing and Shanghai!

These $20 – $30M buyers having made their offers are holding off to exchange when they can return to see the property.

The pattern is repeated in Melbourne’s eastern suburb of Box Hill, where sales and marketing director, CBD Development, Ricky Chen is seeing enquiries pick up again for a mixed-use high-rise development with hotels and retail space. 

They are seeking larger apartments to live in, to retire in Australia or to send their children to study.

Martin North, principal of property research firm Digital Finance Analytics, also notes ‘there’s been a swing away from foreigners looking to invest to people wanting to move here.’  And that they are more interested in buying land and larger properties! 

Read more!

https://www.abc.net.au/news/2021-07-02/chinese-overseas-buyers-australia-property-housing-investors/100259470

Have our politicians including Premier Berejiklian been promoting our success in fighting Covid-19, and our beautiful country to entice foreign investment with its many added benefits of a Permanent Resident Visa following purchase?

Many Chinese have previously purchased an apartment as a ‘new home’ through which purchase they gained a ‘Permanent Resident Visa’, and this Visa has allowed them to buy our established housing.  Which explains how they can overcome the FIRB restriction of only being able to buy a ‘new home’!

They can ‘lay-buy’ these homes through Juwai until the borders open, and fly in as ‘Permanent Residents’.

OBVIOUSLY these overseas buyers have led to even more competition for our housing, and further reducing the supply!

The property industry, and the Law Council backed by the Morrison Government exemption for the Real Estate Gatekeepers to the second tranche of the Anti-Money Laundering Laws in October 2018 has meant ‘black money’ continues to be awash in our real estate.

Many properties, we have learnt, do not reach the real estate websites, but are sold online to these overseas buyers sight unseen!

It is not only First Home Buyers but all Australian Buyers have been impacted as prices escalate daily!

CONTRARY to Eliza Owen from CoreLogic, and Elena Collinson these reports reveal the return of Chinese property buyers to our housing market:

From the ABC The Business: ‘Chinese Property Buyers Return’ as recently as 1 July 2021.

And ‘US Buyers lead a 15.5% surge in Foreign Investment in Aussie Houses’

‘ … trailed by Singapore with $9.5 billion and mainland China in third place with $7.1 billion. However, China’s overall value rose to just shy of Singapore’s when combined with that of Hong Kong.’

And ‘Cashed-up Chinese Buyers swarm Australia’s Housing Market with their sights set on major East Coast suburbs’!

‘Interest in real estate from China has skyrocketed by 51 per cent over the past year, according to a study by Chinese investment website Juwai – identifying Melbourne as the best market for buyers.’

In Australia previously we have lost many of our Heritage Homes because wealthy foreign buyers bought them while on a temporary visa to then demolish them for a ‘new home’, and gain a PR Visa.

Are they able to increase Australia’s housing stock by adding a granny flat, and enticing family members through any number of other visas e.g. Family, Guardian, Parent, Grandparent … ?  Cough … cough …

AUSTRALIANS, it appears, are aware now of what has been happening having witnessed enormous housing development in their midst along with a huge influx of Visa holders particularly from China.  Their concerns have been confirmed not only by these changes, but Geopolitical Strategist David Lee confirms why:

‘If you get on the hill, and you film down into Chatswood – it’s like this city in the middle of nowhere called Chatswood … it is just northwest of the Sydney CBD.

It is being built by the Chinese Communist Party.

All the money has come from China. It’s not from Hong Kong people … they speak Mandarin (in Chatswood; previously it was Cantonese)

A lot of money comes into Chatswood, and it’s effectively the Shenzhen/Hong Kong to Sydney CBD of Australia.

This is the most wealthiest couple of kilometres in the entire of Australia! … This city has happened out of nowhere … massive high-rises … it looks like Hong Kong … it’s a city being built ostensibly with China’s money … ‘

Read more!

A GEOPOLITICAL STRATEGIST ON THE MK, HONG KONG, THE U.S. and AUSTRALIA …

It is indeed surprising that as much as 33% of those surveyed would believe that Chinese investment in our real estate market would benefit Australians when 100% of the dwellings in these precincts are sold to Chinese buyers, and are constructed by largely overseas workers particularly from China!

Chinese Property Buyers tipped to replace Chinese Investors in Australia

Chinese property Buyers tipped to Replace Chinese Investors in Australian homes, isn’t it one and the same thing?

Having invested in an apartment, they gained a ‘Permanent Resident’ Visa which has allowed them the freedom to come … to stay or go.

Real estate agents and analysts say enquiries and sales are on the rise from Chinese and other foreign buyers. 

Despite the supply of homes not meeting the current demand and needs of Australians, why is the Morrison Government allowing overseas competition for our homes?

The property sector is no doubt loving this …

Prior to the Pandemic foreign buyers particularly from China were able to take advantage of a range of temporary visas that invited investment in our real estate to gain Permanent Residency.

They were able to buy an apartment online through, for example, Juwai, and gain a ‘Permanent Resident Visa’ which has enabled them to buy our detached homes and avoid the ‘investor taxes’!  During the Pandemic we have learnt that real estate agents have had Chinese buyers on the phone or online seeking and buying up our homes sight unseen!

In the late 1990s the Howard Government introduced the changes to our immigration policy for the Chinese middle class to embrace the offer of “flexible citizenship” in return for investing in property and education … this led to home prices rising in the early 2000s and the 2004 housing price boom.

How humongous is the amount of real estate owned by foreign buyers? Do they – meaning the Australian Government – know the level of assets in foreign ownership?

There is now a ‘Register of Foreign Ownership of Australian Assets’ … but is it retrospective?

Read more!

https://www.lavan.com.au/advice/property_leasing/the-register-of-foreign-ownership-of-australian-assets

AND … Australia now has the ‘Foreign Investment Reform (Protecting Australia’s National Security) Act 2020 (Cth) …  amended the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) to (among other things) give the Treasurer powers to address new and emerging national security risks.

Read more!

https://www.lavan.com.au/advice/property_leasing/national-security

Oh, good, but what of the security of home ownership for the Australian people not only being confronted by huge price hikes during 2021 which were said to be a consequence of very low interest rates, a housing supply shortage but …

SQM research managing director Louis Christopher said it had been an “extraordinarily” strong quarter.

“It was … driven by a multitude of factors, particularly government stimulus,” he said.

As with the First Home Buyer Grants which led to house price increases!  It seems that once again such offers benefit the property sector, and NSW Government stamp duty coffers.

“This has been the most rapid acceleration of house prices over a single quarter since Domain records began in 1993.” (reported 29 April 2021)

Read more!

https://www.abc.net.au/news/2021-04-29/nsw-house-price-growth-rockets-to-new-median-high/100102492

So with the government spin particularly in NSW until now and the Delta strain of Covid-19 … its much-lauded contact tracing system that we had *controlled the Pandemic, was this perhaps to entice more overseas buyers to buy up our large homes and land creating even more competition for this limited housing stock?

And as the Real Estate Gatekeepers are exempt from the second tranche of the Anti-Money Laundering Laws (Morrison Government October 2018) it looks like Australians will readily be outbid again!  

Some homes may not even appear advertised on the real estate websites

It is now mooted that ‘Australian property is likely to be a more attractive option for overseas buyers’ but what is not conveyed is that they can buy online to gain the PR Visa to fly in when the borders reopen.

The peak of Chinese investment of almost $32Bn was in 2015-16 which led to a house price rise with suburban homes selling for $1.5M which happened to coincide with a visa and $1.5M investment.

Monika Tufounder and director of Black Diamondz Property whose clients are mainly Chinese citizens with Australian residency working and living abroad predicts that when the borders open they will flood back in … some are seeking $10M plus homes, but will they be seeking our detached homes with large land lots in green suburbs too? Hm … . Not only will they continue to come from China but Singapore, Hong Kong, the United States (Canada too?) and the United Kingdom. 27 of the 29 Sydney properties listed by Black Diamondz sold recently.

Once again the ‘exchange rate’ is in their favour!  With Australian housing more reasonably priced than Japan, London, New York, Beijing and Shanghai!

These $20 – $30M buyers having made their offers are holding off to exchange when they can return to see the property.

The pattern is repeated in Melbourne’s eastern suburb of Box Hill, where sales and marketing director, CBD Development, Ricky Chen is seeing enquiries pick up again for a mixed-use high-rise development with hotels and retail space. They are seeking larger apartments to live in, to retire in Australia or to send their children to study.

Martin North, principal of property research firm Digital Finance Analytics, also notes ‘there’s been a swing away from foreigners looking to invest to people wanting to move here.’  And that they are more interested in buying land and larger properties!

Read more!

https://www.abc.net.au/news/2021-07-02/chinese-overseas-buyers-australia-property-housing-investors/100259470

And as CAAN has previously shared with you they are accompanied by parents, grandparents, guardians or a group of people buying together … in some suburban apartment developments for instance in Asquith they buy a whole floor!

There are a range of Visas facilitating this including Parent, Grandparent, Family, Student, PhD Student, Guardian …

This time Martin North predicts more competition for standalone houses, the top end of the market and large properties with land.

WHAT A FRIGHTENING PROSPECT … the competition for homes this year has been staggering with 100 or more people lining up for Open Home Inspections … Auctions held within two or three weeks … or Pre/Off Market Sales where buyers on one inspection have to make an offer or miss out!

WHERE IS THE DUTY OF CARE BY THE MORRISON GOVERNMENT? 

IN VIEW OF THE HOUSING SUPPLY SHORTAGE WHY IS THIS GOVERNMENT ALLOWING FOREIGNERS TO BUY UP OUR HOUSING STOCK?

HOW is this government on your side? 

There’s Hope Ahead … with Changing Circumstances for a Cooling Market!

KEY POINTS …

Professor Shuping Shi, Macquarie University Business School:

-property prices not expected to fall substantially but might level off or fall slightly in future

-investors re-entering the market, and a fear of missing out has pushed prices higher

-investors counting on rapid gains to make a large profit

-much of this market shows indications of bubble risk

-to provide a “real-time bubble indicator” was a price-to-rent ratio; with Sydney double-digit growth in a single month

HSBC Australia Chief Economist Paul Bloxham:

-the housing market is going to cool over the coming quarters and running into 2022

-continuing border closures and stalled population growth would weaken housing demand and see price growth drop back to single digits

-the surge in demand would also drop off

-the Reserve Bank won’t turn to negative rates; no more cuts ahead to fuel further demand and price growth

-with strict lending standards, housing market fundamentals and the closed border will see the market cool *

READ TO LEARN MORE ABOUT THE HOUSING FEVER WEBSITE!

Australian property market showing signs of bubble risk, academic modelling finds

HOW come Aussie House Prices have risen 120% in 20 Years?

A new OECD Report, reveals Australian households have more mortgage debt, and our house prices rose 120% in the 20 years to 2020!

We suggest, however, it is not only the hike of the last two decades … but why did house prices escalate in a matter of weeks over Christmas to January 2021?

We are told ‘it’s the market’ that’s what Agents say … BUT who set the prices?

In 2020 Agents before launching house sale campaigns … we have been told … argued that they market by advertising a low price guide to entice more buyers.

But in January 2021 we saw that some like houses went on the market at the reserve or above!  At $200,000 more than the sale prices of those in November/December 2020!

Was it through these agents ‘laying the track’ that set the course for the further escalation of prices across Australia in 2021?

Real Estate Agents, or rather the game now being played is to ask Buyers how much would they pay? And as the campaign rolls on with dozens if not 100 aspirant buyers competing for the same house … in a 30 minute ‘Open Home’ … the price rises …

There may only be one or two ‘Open Homes’ available in a week … maintaining FOMO with this high competition …  it would seem that the ‘marketing’ needs to be addressed by a consumer commission like that of the Australian Competition and Consumer Commission?

And what led to this BOOM in house prices, and a whole Cohort of Australians being locked out of the market?

In the late 1990s the Howard Government introduced Temporary Visas for foreign workers which undercut wages for our people!  

Prior to the Pandemic there were 2.3 MILLION Temporary Visa Holders in Australia! They were lured by an opportunity to invest in property and education to gain ‘Permanent Residency’

Compare this to the prior annual 70,000 permanent migrants intake!

In addition to this high immigration, Mr de Mello from the Economics Department of the OECD, also said that restrictive regulations of land use and zoning in our major cities contributed to the supply of new housing failing to meet this demand from high population growth.

Mr de Mello, who is not from here, can be forgiven for being unaware of how in Sydney we have already lost most of our ‘Green Belt’ mid 20th Century due to landbanking and redevelopment by developers!

 But why do the RBA, Commonwealth and NSW Productivity Commissions call out planning restrictions when they are in full knowledge of the loss of our Green Belt, and how it came about?

‘Gradually the Cumberland County Council was forced to release more and more land in the Green Belt during the 1950s until it was abolished in 1963 and replaced by a state planning authority.’  

“What happened to Sydney’s Green Belt? The bush to the west of Sydney in the Cumberland district was to be protected from suburbia,” was the question!

Read more!

https://www.abc.net.au/news/2018-03-29/curious-sydney-what-happened-to-sydneys-green-belt/9576144?nw=0

And indeed ‘Migration matters’ to the developer lobby, the Urban Taskforce!

Extract from the first edition of ‘Urban Ideas’

‘What is now needed is a planning policy that drives the development of up to 10,000 well designed apartment buildings, in appropriate locations in metropolitan Sydney, over the next 25 to 30 years.

The Urban Taskforce supports the growth of Sydney as outlined in the Metropolitan Strategy. In fact, we believe that the growth could be higher than the governments predictions, if immigration levels are maintained.

We also understand that the community has concerns about the change of character that will flow from a move to a more urban environment. But somehow the extra 770,000 new housing units will need to go somewhere so we are demonstrating one approach towards this.’

https://www.urbantaskforce.com.au/urban-ideas-2/

DESPITE the fact that we are still part way through the COVID-19 PANDEMIC with its spread across the globe particularly in high density cities, this mob persist with plans for ever more high density high-rise!

AND here in Sydney and Melbourne due to lock-downs thousands of Australians in 2020 and 2021 moved out of apartments seeking the freedoms of living in detached housing, and moved to the regions to seek more affordable housing!

WHY should we in Australia ‘have to get outa the way for a more urban environment to benefit developers and foreign buyers’? 

Australians largely live on the narrow coastal strip of the east coast for good reason … because Australia at its heart is desert country with mountain ranges.  Australia experiences severe thunderstorms, droughts, heat waves, occasional floods and frequent bushfires!

There is a shortage of affordable housing for Australians, and even more locked out now with prices escalating in 2021!

Australians, it would seem obvious, need to lobby their politicians for a STOP to Political Donations of which the Liberal Coalition gets the lion’s share from developer groups!

And to lobby for a return to sustainable permanent migration of 70,000 per annum or less!

THE WAY out of this problem is to build affordable housing for Australiansto stop with the high immigration and return to the permanent sustainable migration system of 70,000 per annum … or less!

READ MORE! ‘Australian households have more mortgage debt than almost any advanced economy, a new OECD report finds. It blames one key factor’ https://www.businessinsider.com.au/australian-households-mortgage-debt-oecd-2021-6 SEARCH CAAN WEBSITE: https://caanhousinginequalitywithaussieslockedout.wordpress.com/

 

Despite Aussies aged under 35 Locked Out of Housing Developers want more Foreign Buyers

TODAY we got a tipoff about an article in ‘The Australian’ Business section ‘Foreign Buyer Drought hits Units’ … online it is under the headline: Covid squeezes apartment pipeline as foreign investors stay home The report opens with ‘Chinese residential property investment shrunk to the lowest levels in seven years during the Pandemic causing the supply of pipeline of apartments to dwindle over the coming years’.  What does that say? It says, as we know, that the pipeline of apartments are built for the Chinese market. How did this come about?  The Foreign Investment Review Board ruling that allows developers to sell 100% of ‘new homes’ to overseas buyers … and a whole raft of temporary visas facilitating them to fly in and buy, or online through Juwai, or through an onshore Proxy! This ruling is still current as with the second tranche of the Anti-Money Laundering Laws through which the Morrison Government exempted the Real Estate Gatekeepers in October 2018! DESPITE a whole Cohort of Australians notably those aged under 35 being locked out of home ownership this lot want Chinese buyers to return*! As reported today in the Sydney Morning Herald, ‘Soaring House Prices: an economic threat eating away the Future’ and making our national economy less stable and lowering productivity.  It was the huge influx of Chinese buyers that also escalated house prices esp. between 2015 and 2017! And now with 60% of First Home Buyers funded by Parents or Grandparents, low interest rates, subsidies of Government grants house prices have again escalated locking out those who have not got wealthy parents. View: https://www.smh.com.au/politics/federal/soaring-house-prices-an-economic-threat-eating-away-the-future-20210614-p580s2.html?fbclid=IwAR2hfBtlBlVTG1soRTaj3IDVUAq0o4dt_DAj2jflVUTuZyEpgoX159ZUhIU In 2014 developers spent $11.3Bn; in 2019 $5.03Bn; in 2020 $4Bn on residential sites.  Overseas buying fell to less than $.5Bn which still represents a loss of housing for Australians … Apartment developers so addicted to this foreign buyer market that they are concerned that only 86,400 new apartments are planned for across Sydney, Melbourne, Brisbane, the Gold Coast, and Perth up to 2024 It would appear following the ‘towers cracking up’ followed by the Pandemic that many have moved out of high-rise apartments seeking the space and freedom of a house and garden which has prompted developers to shift to building boutique apartments given low rates and a housing shortage. The developer lobby group, the Property Council of Australia (for which Scott Morrison, the PM wrote the policy prior to entering politics) has called for all our State Governments to stimulate this sector!  By reducing international investor surcharges, and improvements in planning processes! Chief Executive Ken Morrison proposed that 30,000 jobs could be at risk across Australia, and that apartment construction was a ‘critical component  of Australia’s future housing supply and a vital job creator for our economy.’ Never mind that currently there is a shortage of building materials much of which are imported, that project home developments have become more expensive due to this shortage and trades being in short supply (due to the demise of TAFE), and that aspiring home owners prefer to buy these house and land packages! And what of the shortage of trades to do home maintenance projects across our suburbs? Morrison submits that unless policy changes are made that the apartment building sector will lose 30,000 jobs and produce $5.9Bn less in housing over the next four years. And that inevitably immigration would return!  This is despite all the media today raising concerns about those Australians aged under 35 being locked out of home ownership! Morrison submits that international buyers and Build-to-Rent investors will be key to new projects along with planning and stamp duty * relief. It would seem that due to this sector previously seeking cheaper building supplies esp. from China that the Pandemic had led to shortages and price increases for end users! PLEASE SHARE THIS WITH OTHERS! SEND your OBJECTIONS TO LOCAL MPs for restoration of the housing development market for Australians!