Builds short of pledge

AUSTRALIA’S peak housing group has warned the government and Reserve Bank are headed into conflict over a federal budget goal to create one million new homes in five years.

New forecasts by the Housing Industry Association have calculated construction will commence on 970,720 new homes in the five years ending in 2028, missing the ALP’s five-year target.

They are contained in HIA’s National Outlook Spring 2022 report, which was released at a breakfast event in Melbourne last week — along with an opening statement that highlighted the competing agendas.

“The RBA and the government have gone head-to-head with ambitious, and conflicting goals,” it read.

It warned further rate hikes could see the almost 30,000 home shortfall blow out even more.

“If the RBA continues to increase the cash rate in 2023, this forecast will be downgraded, and the challenge of building one million homes will become increasingly difficult,” the report said.

HIA senior economist and report co-author Tom Devitt said the goals “seem to be at cross purposes”.

“But even though they do appear to be conflicting on that front, there are other tools at the government’s disposal,” Mr Devitt said.

He said one option would be to provide grants to local governments that expedite land releases to effectively reduce prices and encourage house and land purchases.

The HIA report indicated Australia has built more than one million homes in a five-year period on the past, but noted the achievement in the half-decade ending in December 2018 was heavily buoyed by an unprecedented apartment boom.

The industry group anticipates multi-unit construction will increase by more than 10,000 homes a year from 73,920 starts in 2022 to more than 85,500 in 2024.

The report suggested a notable upswing in these figures would be need to be achieved to reach the one million homes target in time for the government’s December 31, 2028, deadline.

OPPORTUNITY has come knocking in Claremont with this dual title residential development property with two existing dwellings.

Together, their combined land area is 3366sq m, just 200m from Claremont Plaza.

This Inner Residential in-fill development site is flat and well suited to a strata title development, subject to council approvals.

It also has holding income from the dwellings. No.72 Main Rd has been recently renovated.

No.72 is a 114sq m three-bedroom house with a double garage. It is currently leased at $540 per week.

No.74 Main Rd measures 172sq m. It also has three bedrooms, plus high ceilings and many period features.

Both are a 50m walk from the Main Rd bus stop.

The properties have northern views over the River Derwent, proximity to private and public schools and they are about 15km from the Hobart CBD.

Both of these Main Rd properties are for sale with Knight Frank by expression of interest, which will close on Tuesday, December 13 at 4pm.