investment?
We were told in the May Federal budget that changes to the tax regime would encourage capital to flood into new supply.
Instead, the market has crashed due to interest rate pressure and investment uncertainty.
The Housing Industry Association (HIA) is now reporting that new home sales have fallen for four months straight since the Federal Budget. Sales dropped by a further 10 per cent in the past month alone, and sit 7.7 per cent below the same time last year, even as a supply crunch looms.
We are back to sales levels from late 2023 – just after the six initial rate rises dented the market.
The #housingaccord target will only contract further, putting more pressure on everything in the mid-long term.
📉 In fact, I predict that the national #housingsupply pipeline will contract further into 2027, compounding the shortfall to closer to 300,000 homes over 5 years.
Meanwhile, watch as builders and sub-contractors with weaker forward books do not survive.
🤔It seems that we just keep getting the worst of everything when it comes to housing and economic policies.