The 2023 Federal Budget released this month aims to address some of the property market’s greatest challenges. Among its measures is a new tax break for the build-to-rent sector, increased rent assistance and an additional $2 billion to support affordable housing.
In a bid to further help first home buyers, the expansion of Australia’s First Home Guarantee and Regional First Home Buyer Guarantee allows siblings, extended family and friends to submit joint applications from 1 July this year.
The HIA New Home Sales report shows an increase of 6.8 per cent in sales of detached home construction. However, more than 1 in 4 of those sales results in cancellation. HIA chief economist Tim Reardon says the cancellation rate is at ‘its highest since the start of the pandemic’. This is more than likely due to the impact of higher interest rates and the inability to gain finance.
Subsequently, HIA claims that last month’s building approvals ‘remained at their lowest level in over a decade’, with detached house approvals falling by 3.6 per cent and multi-units by 16.9 per cent.
The gap between house and unit rents has significantly decreased across all capitals over the last 12 months, according to CoreLogic’s report. Apartment rents now only $39 cheaper than house rents.
Download and read the full Market Essentials – June 2023 Report.