Gold Coast Mayor, Tom Tate, is keen to secure the 2026 Commonwealth Games which have been abandoned by Victoria. Victorian Premier Dan Andrews last month withdrew from hosting the Games in 2026 after concerns of massive cost blowouts. Tate says it could be held on the Gold Coast at a cost of just over $1 billion. Despite the Mayor’s desire to snare the event, both the federal and state government have saidQueensland should instead remain focused on the 2032 Olympic and Paralympic Games. But Tate says the momentum behind a 2026 Gold Coast Games is growing. The Gold Coast already has a lot of infrastructure in place after hosting the Commonwealth Games in 2018. “Every news poll has shown overwhelming support – and the irony is that we are not even asking for additional funds from the Federal Government; I simply want the Federal Treasurer to redirect the funds they had planned for Vic2026 to us,” he says.
Gold Coast Hotels
Two luxury hotel developments have been approved by the Gold Coast City Council. The first is a $333 million development at Movie World and the second a $480 million revamp of Mariners Cove at The Spit, including a six-star Ritz Carlton. The 22-storey, 600-room hotel at Movie World at Oxenford, will include a panoramic sky deck, infinity pool, bar and restaurants. The hotel will be built on the theme park’s existing carpark and will include stand-alone entertainment and function facilities. Planning committee chair Cr Mark Hammel says the hotel will provide a $100 million boost to the economy during its construction and 500 jobs will be provided in the hotel. Council planners also approved the Mariner’s Cove development with conditions. Cr Hammel says the project fits in with the overall master plan for The Spit. He says the council is working with those businesses which will be displaced by the project to find other sites.
Quote of the Week
“The solution has to be putting in place a structure that makes the supply side of the housing market more flexible. And that means zoning and planning deregulation, and it means state and local governments being part of the solution.”
Outgoing RBA Governor, Dr Philip Lowe
Land Shortage Causing Crisis
A shortage of land is contributing to the ongoing housing crisis throughout Australia. The latest Housing Industry Association (HIA)-CoreLogic Residential Land Report, on 51 housing markets, says the scarcity of land for property development is a “considerable roadblock” to the supply of new homes in the upcoming year. HIA senior economist, Tom Devitt, says the volume of residential land transactions fell 37% in the 12 months to March 2023 and as a result the number of new homes that will be built next year will drop. “An acute shortage of available land saw the price increase by 23% over the three years from March 2020 to March 2023. This compares to just a 5% increase in the three years before that.” Devitt says land sales have dropped throughout urban and rural areas with 36 of the 51 regions examined experiencing a drop in transaction numbers. “Decisions made today about land releases can be expected to affect housing supply ten years from now,” he says.
Borrowers Coping Well
More than $350 billion worth of home loans are expected to move from fixed to variable rates in the coming months. Despite predictions it will result in higher levels of loan arrears, major banks report owners are still coping well. Bendigo and Adelaide Bank CEO Marnie Baker says they are not seeing “material” signs of borrower distress in regional or urban areas. Its number of loans 90 days in arrears has risen slightly to 0.46% and remains close to historical lows. “Borrowers remain in good shape with 41% of loans at least one year ahead on repayments and 31% of loans two years ahead on repayments,” she says. Commonwealth Bank has $52 billion of mortgages transitioning off fixed rates in the second half of this year. Only 0.43% of its loans are in arrears more than 90 days. Sebastian Watkins, of Aussie Home Loans, says the transition will result in a significant amount of financial pain and stress for Australian mortgage holders
Rent Caps Will Worsen Crisis
Imposing rent controls, may prolong the housing crisis, according to outgoing Reserve Bank of Australia governor, Philip Lowe. While all levels of Government are discussing restricting landlords from raising rents, Lowe says it won’t solve the issue. The Greens are pushing for the Federal Government to implement a two-year rent freeze. But Lowe says the only solution is to build more houses. “There’s always a tendency to try and come up with short-term solutions,” he says. “The solution has to be putting in place a structure that makes the supply side of the housing market more flexible. And that means zoning and planning deregulation, and it means state and local governments being part of the solution.” Lowe has called for deregulation of “restrictive zoning laws” which he says have pushed the cost of land up to levels not experienced elsewhere in the world. “Thinking longer term, doing something in that space would make a difference to the quality of life in Australia.”
