Punching through the housing crisis, PEXA outlines five-point strategy in federal budget proposal

In response to Australia’s deepening housing affordability crisis, property technology firm PEXA has made a submission to the Federal Government, detailing five key strategies that could provide meaningful change. The submission comes at a time when national concerns over housing have intensified, making this issue a focal point for socioeconomic policy discussions.

PEXA’s proposition outlines a multifaceted plan aimed at enhancing affordable housing, improving policy effectiveness, and ensuring equitable digital access within the property market. Glenn King, CEO of PEXA Group, articulated the urgency of the situation: “Housing has become a critical issue nationwide, with availability, affordability, and suitability of housing all demonstrably worsening since 2020 for a range of complex long-term reasons.” He stressed the importance of addressing this, stating, “Access to affordable, suitable housing is now the single most urgent social and economic policy problem for Australians.”

Central to PEXA’s submission is the acceleration of a national affordable housing register, which is currently under development in collaboration with local government and the private sector. This database aims to track affordable housing obligations and ensure that developers fulfill their commitments to provide housing at below-market rates for vulnerable Australians.

Regulatory evaluation and enhanced resources are also suggested to facilitate access to aggregated land and property transaction data, with PEXA highlighting the benefit for housing policy and related national objectives. King highlighted the low-cost and practical nature of their recommendations, which he asserted can be started “immediately and at low cost to Government.”

PEXA’s call for action doesn’t stop at these initiatives. The organization emphasizes the importance of establishing a comprehensive national digital identity framework and pushing for equal access to electronic conveyancing, which are deemed essential for the modernization of Australia’s property transaction processes. Moreover, PEXA points out the necessity of funding cybersecurity training for small businesses, particularly those in high-risk sectors, to fortify the nation’s online commercial activities against increasing cyber threats.

The submission underscores an envisioned collaboration between government and private interests, as seen in the development of the Progressive Residential Affordability Development Solution (PRADS) by Housing All Australians (HAA). With existing support from a number of associations and councils, this model is poised to stimulate private-sector investment in affordable housing. PEXA’s role in facilitating a functioning PRADS Register is highlighted as a crucial step supported by these collective efforts, lending credence to their call for federal funding to bring this register to full operational capacity.

In presenting these recommendations, PEXA illustrates a roadmap that could significantly impact Australia’s property and housing landscape, presenting opportunities for policymakers to engage with challenges in a holistic and efficient manner.