PropertyBuzz, your daily dose of property news.
1 in 3 Australian homes are cheaper to buy than rent, Planning reforms in New South Wales put over 100,000 new homes on the radar, but Could housing targets sacrifice quality for quantity?
Welcome to Property Buzz! I’m Orana Durney-Benson.
Today is Wednesday, the 29th of November, and
It’s been revealed that over a third of homes in Australia are cheaper to buy than rent, according to a national analysis by PropTrack.
– The most favourable buying conditions are in Queensland, South Australia, and Western Australia, despite rising interest rates and home prices.
– The high number of homes cheaper to buy than rent is due to a record pace of rent growth, with advertised rents up 14.6% over the past year.
– PropTrack economist Paul Ryan predicts that higher interest rates in 2024 will challenge housing affordability, potentially slowing price growth and rebalancing buying conditions.
Over in New South Wales,
new planning reforms could create over 100,000 new houses across the state.
– The Minns government plans to amend planning laws to allow mid-rise homes and terraces in R2 zones, with the aim of increasing housing supply.
– The amended State Environmental Planning Policy will override local councils who oppose densification, with only 2 of 32 LGAs across Sydney currently permitting medium density dwellings in R2 zones.
– The proposed changes will permit dual occupancies, terraces, townhouses, and two-storey apartment blocks in R2 zones, and mid-rise apartment blocks in R3 zones, particularly near transport and employment hubs.
– If implemented, the amendments could create capacity for 112,000 new homes across major metropolitan areas, comprising 30% of the almost 400,000 new homes New South Wales committed to constructing by 2029.
But optimistic housing supply goals may be putting the public off, with two-thirds of Australians fearing that building quality will decline as the construction industry struggles to keep u[p with demand.
– According to Equifax, seven in 10 Australians are concerned about the increasing number of construction company insolvencies.
– Only three in 10 Australians have a positive perception of the construction industry.
– The research suggests that wider use of independent rating tools could help regain consumer trust, with over 60% of respondents willing to pay more for certified building professionals.
That’s it for today.
See you again tomorrow, the 30th of November, for your daily dose of Property Buzz.