More action needed on housing

PROPERTY groups say the federal Budget could spark consumer sentiment, helping them combat the slowing housing market, and have welcomed the promise of further infrastructure spending.

But they also called for more action by lenders to support growth and a strategic approach to population and settlement to unlock housing supply.

The Property Council of Australia noted the Budget’s growth projections were heavily reliant on Australia’s falling housing markets holding up.

“This is a Budget set for growth, but behind every number in the Budget is the unknown effect of the housing downturn,” chief executive Ken Morrison said.

Stockland chief Mark Steinert said measures – such as tax relief and energy discounts – to assist with the rising cost of living would help to improve consumer sentiment. Urban Development Institute of Australia president Darren Cooper said more work was needed to implement a well thought-out population and settlement strategy to help reduce housing shortfalls in many areas.

“A holistic tax reform should also be implemented to unlock the much-needed funds Australian families need to access affordable homes,” Mr Cooper said.