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Some optimism in poor building figures
Australian Bureau of Statistics figures for NSW showing a seasonally adjusted increase in total dwelling unit approvals last month of 6.2% but a fall of 2% in the number of private sector houses is an indication that the property market has eased.
REINSW President, Mrs Cristine Castle, said that overall the news was good for home buyers and investors looking to re-enter the NSW market as the short-term reduction in supply of properties would ensure values remained strong in the medium-term, however, she said the NSW Government’s appetite for property sector taxation, poor policy making in regard to land tax, and the now infamous vendor tax had needlessly hurt the industry and encouraged investors to look elsewhere.
“The market has eased but remains stable, which means there is better value for investors in the marketplace and properties are more affordable,” Mrs Castle said.
“However, the NSW Government must be held accountable for its poor decision making and changes of policy over recent months, which has created unnecessary uncertainty in the minds of homebuyers and investors.”
“Hopefully the Government now realises the importance of encouraging property investment and building activity, which is a key driver of economic growth and employment opportunities, rather than treating small investors and homeowners as easy tax targets,” Mrs Castle said.
“Confidence in Government decision making and trust can only come about if it takes a much more considered and consistent approach.”
“It must reduce its reliance on property taxes as a proportion of Government revenue and land tax reform is now essential and overdue.”
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