SPRING HAS SPRUNG ~ Athena Quays to finish next month

New Article: 🏗️ Housing Supply

Author

Garry Bradburn
September 05, 2024

Athena Quays Building 1 is due for settlement late next month, which makes for fabulous timing to move into your brand new home without the wait period.

Why is there a low supply of property available in Australia?

If you have read the news at all over the last decade, you will have seen the headline “housing shortage”. Housing shortage and low supply, pushes up the prices, we know this. But why is Australia in the midst of the worst housing shortage we’ve ever seen?

According to the UDIA State of the Land 2024 Report, this shortage and subsequent housing crisis has been developing over the last two decades. Housing development applications are moving at a glacial pace, which means there is simply not enough land available for development and building. Australia is ranked 23 out of 33 for housing availability, within developed countries globally, according to the Organisation for Economic Co-operation and Development. Partly due to our historic cultural fixation on living in large houses, rather than apartment living.

According to Mark Bainey, a NSW based property developer, the reasoning is simple. There is just too much red tape slowing the process down for developments in NSW, where they need to gain the green light from 30-40 seperate agencies such as Sydney Water to be able to commence building. He believes that Queensland regulatory procedures are simpler, allowing for faster building within the state. While we are lucky in the Sunshine State to have less red tape to contend with, we are still fighting the high cost of construction materials such concrete, cement and sand products which are now 16.2% higher than a year ago. While this may feel like a doom and gloom situation, the winners from this supply issue are home owners.

The success of the Gold Coast’s supply of apartments mean it is still possible to get into the market here at an affordable price point, and to be comfortable knowing that your investment is going to be strong, while Australia continues to allow for increasing migration into the country each year, putting further pressure on the system and continuing to drive demand for property.

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