The property industry has welcomed the ALP announcement that it will not change the rules on negative gearing and capital gains tax. The Federal Shadow Cabinet has committed to maintain the existing arrangements, after Labor’s policy to scrap negative gearing and raise CGT was a major issue at the past two Federal Elections. Opposition Leader Anthony Albanese says the commitment will provide “certainty and clarity to Australian working families”. The Property Council has welcomed the move, noting that previous policies would have hurt the economy, cost jobs and had little impact on affordability. Master Builders CEO Denita Wawn says the move is good news for the building industry, the economy and the community. Modelling by Deloitte Access Economics found Labor’s previous policy would have reduced GDP by $1.5 billion, shrunk the construction sector by $766 million and failed to improve affordability
NAB Tips 20% Price Rises
NAB has raised its price growth forecasts, tipping rises averaging 18.5% across the capital cities this year. The bank has upgraded its expectations for most cities, with Sydney to rise 21.6% , Melbourne 17.6%, Brisbane 19.5%, Adelaide 17.4%, Perth 11.6% and Hobart 23.5%. But the NAB report forecasts only moderate growth in 2022, with rises around 4% across the capital cities. In April, the bank predicted Sydney prices would rise only 6% this year, Melbourne 5.5%, Brisbane 6.2%, Adelaide 6%, Perth 5.6% and Hobart 6.1%. “NAB has revised up its forecasts based on the faster-than-expected growth in prices over recent months,” the report says. “From here we see the monthly pace of growth slowing but continuing at a solid rate.” The current lockdowns are expected to have a sizeable impact on the economy, but the impact will be transitory. “We remain optimistic that as restrictions are eased, activity will rebound, as has been the case in previous lockdowns,” it says.
Quote of the Week
“We recently saw our strongest month of home lending on record in June, which is a sign of very strong demand.”
Andy Kerr, NAB home ownership executive
Work From Home Sets In
The remote working trend which has helped drive the property boom in regional areas and smaller cities shows no sign of slowing down. Data from networking and job site LinkedIn finds that employers are embracing greater work-life balance, with the number of jobs offering remote work options still rising. In 2020, job listings offering flexible work options had a 14-fold rise compared to pre-pandemic figures. Despite many businesses returning to the office last financial year, ads in the first half of 2021 including a work-from-home choice rose three times on last year. Demand for property in the regions, which has been strong for several years, has caused prices to rise 17.7% in FY2021, CoreLogic says, compared to 12.4% in the capital cities. LinkedIn managing director Matt Tindale says organisations are looking at more flexible arrangements so they can access a greater pool of talent from across the country. “We’ve gone through the greatest workplace upheaval anyone can remember and we really think this is here to stay,” Tindale says
Olympics Boost Coast Projects
Gold Coast leaders are already working to get the region’s infrastructure in order for the 2032 Olympics. While Brisbane is technically the host city, the Gold Coast will play a major role, hosting seven events across multiple venues. Gold Coast Mayor Tom Tate predicts those seven events alone will feel like the 2018 Commonwealth Games. It means the Gold Coast needs to get cracking on important infrastructure projects. The region will also need more transport options to move spectators and Olympians around efficiently. Leaders will investigate M1 upgrades, heavy rail to Brisbane, light rail extensions, electric east-west buses and more. Tate says the Games will be life-changing for the city. The cost of hosting the Olympics is estimated to be around $5 billion, while a further $10 billion will be spent on infrastructure, but it’s predicted the Games will have an economic benefit of $17 billion.