Latest news with #MatthewKandelaars
West Australian
3 days ago
- Business
- West Australian
Australia's housing crisis worsens as apartment approvals hit new low
Australia's housing crisis has taken another grim turn, with the latest data revealing a sharp drop in apartment approvals, sparking renewed warnings the country is falling well short of its ambitious new home targets. According to the Australian Bureau of Statistics (ABS), total dwelling approvals fell by 5.7 per cent in April to 14,633 homes. The decline was driven almost entirely by a 19 per cent plunge in apartment and other medium-to-high density dwelling approvals, continuing a steep downward trend in March. In contrast, private sector house approvals rose by 3.1 per cent, fuelled largely by increases in NSW and Queensland, but experts say this is nowhere near enough to meet Australia's long-term housing targets. The Property Council of Australia said governments needed to 'step up'. Matthew Kandelaars, the council's group executive for policy and advocacy, said 5612 apartments were approved across March and April. 'This is a far cry from the 15,029 greenlit during March and April in the apartment boom of 2016,' Mr Kandelaars said. The federal government has committed to building 1.2 million new homes by 2029, a goal that requires monthly approvals to top 20,000 dwellings, a benchmark that has now been missed again. 'Even with approval in hand, it can take years for a project to start construction, held back by a tight labour market, high construction costs and complicated planning systems,' Mr Kandelaars said. 'We will not meet our housing targets without the heavy lifting that needs to come from apartments that can deliver homes at scale close to transport, existing infrastructure and amenities.' In original terms, just 2539 apartments were approved in April, down from 3073 in March. Combined, this is nearly 3000 fewer units than were approved across January and February. The Property Council is now urging state and territory governments to urgently streamline planning systems and cut red tape to reverse the downward spiral. 'Despite a welcome and ambitious target and hard work through the last term of the federal parliament, for many Australians, the dream of home ownership is increasingly unaffordable or completely out of reach,' Mr Kandelaars said. 'State and territory governments need to step up. Planning is key to delivering more homes, and our approvals data shows that the current systems are not working. More must be done to cut red tape and streamline our planning systems to remove uncertainty. 'The dream of home ownership is increasingly unaffordable or completely out of reach.' Meanwhile, the total value of residential building approvals also fell in April, down 1.3 per cent to $8.91bn, while the value of non-residential building surged to its second-highest level on record. As the gap between what's needed and what's being delivered continues to grow, housing industry leaders are sounding the alarm that without urgent reform, Australia's worsening housing affordability crisis may soon reach a tipping point.
News.com.au
3 days ago
- Business
- News.com.au
Australia's housing crisis worsens as apartment approvals hit new low
Australia's housing crisis has taken another grim turn, with the latest data revealing a sharp drop in apartment approvals, sparking renewed warnings the country is falling well short of its ambitious new home targets. According to the Australian Bureau of Statistics (ABS), total dwelling approvals fell by 5.7 per cent in April to 14,633 homes. The decline was driven almost entirely by a 19 per cent plunge in apartment and other medium-to-high density dwelling approvals, continuing a steep downward trend in March. In contrast, private sector house approvals rose by 3.1 per cent, fuelled largely by increases in NSW and Queensland, but experts say this is nowhere near enough to meet Australia's long-term housing targets. The Property Council of Australia said governments needed to 'step up'. Matthew Kandelaars, the council's group executive for policy and advocacy, said 5612 apartments were approved across March and April. 'This is a far cry from the 15,029 greenlit during March and April in the apartment boom of 2016,' Mr Kandelaars said. The federal government has committed to building 1.2 million new homes by 2029, a goal that requires monthly approvals to top 20,000 dwellings, a benchmark that has now been missed again. 'Even with approval in hand, it can take years for a project to start construction, held back by a tight labour market, high construction costs and complicated planning systems,' Mr Kandelaars said. 'We will not meet our housing targets without the heavy lifting that needs to come from apartments that can deliver homes at scale close to transport, existing infrastructure and amenities.' In original terms, just 2539 apartments were approved in April, down from 3073 in March. Combined, this is nearly 3000 fewer units than were approved across January and February. The Property Council is now urging state and territory governments to urgently streamline planning systems and cut red tape to reverse the downward spiral. 'Despite a welcome and ambitious target and hard work through the last term of the federal parliament, for many Australians, the dream of home ownership is increasingly unaffordable or completely out of reach,' Mr Kandelaars said. 'State and territory governments need to step up. Planning is key to delivering more homes, and our approvals data shows that the current systems are not working. More must be done to cut red tape and streamline our planning systems to remove uncertainty. 'The dream of home ownership is increasingly unaffordable or completely out of reach.' Meanwhile, the total value of residential building approvals also fell in April, down 1.3 per cent to $8.91bn, while the value of non-residential building surged to its second-highest level on record. As the gap between what's needed and what's being delivered continues to grow, housing industry leaders are sounding the alarm that without urgent reform, Australia's worsening housing affordability crisis may soon reach a tipping point.
West Australian
3 days ago
- Business
- West Australian
Apartment approvals slide depresses total number of houses signed off in April, ABS data shows
A steep fall in demand for apartments depressed the total number of dwellings approved in April, with industry warning the numbers will need to pick up to meet housing targets. Fresh data from the Australian Bureau of Statistics showed private attached dwellings fell 19 per cent to 4999 — the weakest result since September 2024 — on the back of a 'normalisation' in apartment approvals. The total number of new dwellings approved fell 5.7 per cent to 14,633, according to the seasonally adjusted data released on Friday. NSW (-7.8 per cent) and Victoria (-6.5 per cent) had the steepest falls for total dwelling approvals, while Tasmania (12.7 per cent), WA (9.6 per cent) and South Australia (9.5 per cent) continued to gain. Oxford Economics Australia lead economist Maree Kilroy said the fallback in apartments was not a shock. 'We have been expecting a normalisation from the strong start to the year,' she said. But the Property Council of Australia warned apartment approval numbers needed to pick up. 'While apartment approval numbers are volatile, this is two months in a row of significant falls,' said Matthew Kandelaars, the group's executive of policy and advocacy, said. 'Just 5612 apartments were approved in March and April. This is a far cry from the 15,029 green-lit during March and April in the apartment boom of 2016. 'We will not meet our housing targets without the heavy lifting that needs to come from apartments that can deliver homes at scale close to transport, existing infrastructure and amenities. Australia must build more than 20,000 homes each month to reach the Federal Government's National Housing Accord target of 1.2 million new homes by 2029. The ABS showed a different story for national private house approvals, which gained 3.1 per cent to 9349 off the soft result in March. NSW and Queensland drove the gains, while other major States held relatively flat. Ms Kilroy said a number of policy supports for housing — including social housing stimulus and low deposit loans — were in place and would help to boost supply. However, she said it would take time to reflect in dwelling approvals figures. 'Additional support is likely from the RBA,' she said. 'Two more cash rate cuts are forecast before the end of the year that will further support mortgage affordability and project feasibilities. However, it usually takes about year for lower mortgage interest rates to support approval volumes.'
Sydney Morning Herald
18-05-2025
- Business
- Sydney Morning Herald
The Brisbane suburbs where hundreds of homes are empty
The bureau classifies 'inactive dwellings' as those that were 'opened' as a residential address for income, welfare, or tax purposes from 2016, but as of mid-2021 were 'closed'. But it warns the experimental PLIDA (Personal Integrated Data Asset) analysis must be interpreted with a degree of caution. The analysis was carried out in 2021, during the COVID pandemic, but it is the most recent available data. 'For inner Brisbane, the electricity data has uncommonly poor coverage … and the ABS is still refining our understanding of the PLIDA measure,' the bureau said in a statement. The statistics also show there about 55,000 dwellings classified as a 'non-primary' residence in Greater Brisbane. Non-primary residences are those used as secondary homes, holiday homes, Airbnbs, short-term rentals, or that are empty because they are being sold. Legal or family disputes, the process of winding up deceased estates, or deliberate land banking are all reasons homes and blocks of land can be unoccupied. Delays in obtaining planning approval can also leave prime real estate sitting empty, as well as trouble securing the funds to get tools in the ground. This five-bedroom house in Bridgeman Downs has been empty for the best part of a decade and has been the subject of several subdivision proposals. The derelict and fire-damaged house at 415 Beckett Road last sold in 2019 for $2.2 million. The most recent development application proposes dividing the 9820 square metre block into 20 house lots as part of a larger subdivision. 'New housing projects are too often bogged down in slow approval processes. The longer an application sits on the desk waiting to be approved, the longer it takes to build that home,' said Matthew Kandelaars, group executive of policy and advocacy at the Property Council of Australia. 'We need to make it easier to get homes out of the ground. A 'yes' mindset is needed to simplify and streamline planning processes to remove bottlenecks and boost the supply of new homes.' Local councils and the state government have limited power to intervene to put underutilised properties to better use. Where rates or taxes are not being paid, they can take action, but that is often a long, drawn-out process. The Queensland government launched court action back in 2013 against Brisbane property mogul Edward Amos, who had refused to pay land tax on nine properties on the city's northside. After a protracted legal fight, the state revenue office was given the green light to seize and sell Amos' properties in April this year over unpaid court costs, unless he pays up. At least two houses have been demolished and the blocks left empty. Others remain in a state of disrepair. One-third of people rent in Queensland and Brisbane's median rent for a house reached a new record high of $650 per week this year. The median unit rent hit a peak of $615 per week. Brisbane's median house price remains above $1 million. Amy MacMahon, former Greens MP for South Brisbane, failed in her push for an empty homes levy in Queensland before she was ousted at the last state election. She proposed legislation in 2022 that would charge owners of vacant properties a 5 per cent tax – a move she said would bring thousands of vacant properties into Queensland's rental market and lower both rent and property prices. Victoria is the only state to have introduced a vacant land tax. It introduced the tax in 2018, initially targeting homes in inner and middle-ring Melbourne suburbs. This year, it was expanded to cover the entire state. Under the legislation, all vacant homes in Victoria will be taxed at 1 per cent of their value if they are unused for more than six months a year, with exemptions for holiday homes and renovations. 'We can't afford, really, to have vacant land in metropolitan Melbourne sitting idle. Our clear message to the landowners is to either develop land or sell it to someone who will,' Victorian Treasurer Tim Pallas said when he announced the expanded laws in 2023. It follows similar policies in San Francisco and Vancouver. The Real Estate Institute of Queensland does not support a vacancy tax, with chief executive Antonia Mercorella saying the state should not 'tax our way out of the housing crisis'. 'Given the shortage of rental properties and recent escalation in property prices, it's important to examine ways that existing housing can be utilised to its full potential,' Mercorella said. 'However, the REIQ does not support a vacancy tax. We do not believe the solution is to pin the problem on property investors.' The Property Council is also reticent. 'We need the right tax settings in place to spur investment,' Kandelaars said. 'Additional property taxes increase holding costs and will deter investment in new housing at the time we need it most.' Housing Minister Sam O'Connor would not be drawn on a vacant land tax in Queensland but acknowledged 'it has never been harder to find a place to call home in Queensland'. He said the state government's plans to abolish stamp duty for first home buyers on new homes would incentivise construction, among other measures. 'We've also removed all barriers for first home owners to allow them to rent out a room which will increase the rental options in the market,' he said.
The Age
18-05-2025
- Business
- The Age
The Brisbane suburbs where hundreds of homes are empty
The bureau classifies 'inactive dwellings' as those that were 'opened' as a residential address for income, welfare, or tax purposes from 2016, but as of mid-2021 were 'closed'. But it warns the experimental PLIDA (Personal Integrated Data Asset) analysis must be interpreted with a degree of caution. The analysis was carried out in 2021, during the COVID pandemic, but it is the most recent available data. 'For inner Brisbane, the electricity data has uncommonly poor coverage … and the ABS is still refining our understanding of the PLIDA measure,' the bureau said in a statement. The statistics also show there about 55,000 dwellings classified as a 'non-primary' residence in Greater Brisbane. Non-primary residences are those used as secondary homes, holiday homes, Airbnbs, short-term rentals, or that are empty because they are being sold. Legal or family disputes, the process of winding up deceased estates, or deliberate land banking are all reasons homes and blocks of land can be unoccupied. Delays in obtaining planning approval can also leave prime real estate sitting empty, as well as trouble securing the funds to get tools in the ground. This five-bedroom house in Bridgeman Downs has been empty for the best part of a decade and has been the subject of several subdivision proposals. The derelict and fire-damaged house at 415 Beckett Road last sold in 2019 for $2.2 million. The most recent development application proposes dividing the 9820 square metre block into 20 house lots as part of a larger subdivision. 'New housing projects are too often bogged down in slow approval processes. The longer an application sits on the desk waiting to be approved, the longer it takes to build that home,' said Matthew Kandelaars, group executive of policy and advocacy at the Property Council of Australia. 'We need to make it easier to get homes out of the ground. A 'yes' mindset is needed to simplify and streamline planning processes to remove bottlenecks and boost the supply of new homes.' Local councils and the state government have limited power to intervene to put underutilised properties to better use. Where rates or taxes are not being paid, they can take action, but that is often a long, drawn-out process. The Queensland government launched court action back in 2013 against Brisbane property mogul Edward Amos, who had refused to pay land tax on nine properties on the city's northside. After a protracted legal fight, the state revenue office was given the green light to seize and sell Amos' properties in April this year over unpaid court costs, unless he pays up. At least two houses have been demolished and the blocks left empty. Others remain in a state of disrepair. One-third of people rent in Queensland and Brisbane's median rent for a house reached a new record high of $650 per week this year. The median unit rent hit a peak of $615 per week. Brisbane's median house price remains above $1 million. Amy MacMahon, former Greens MP for South Brisbane, failed in her push for an empty homes levy in Queensland before she was ousted at the last state election. She proposed legislation in 2022 that would charge owners of vacant properties a 5 per cent tax – a move she said would bring thousands of vacant properties into Queensland's rental market and lower both rent and property prices. Victoria is the only state to have introduced a vacant land tax. It introduced the tax in 2018, initially targeting homes in inner and middle-ring Melbourne suburbs. This year, it was expanded to cover the entire state. Under the legislation, all vacant homes in Victoria will be taxed at 1 per cent of their value if they are unused for more than six months a year, with exemptions for holiday homes and renovations. 'We can't afford, really, to have vacant land in metropolitan Melbourne sitting idle. Our clear message to the landowners is to either develop land or sell it to someone who will,' Victorian Treasurer Tim Pallas said when he announced the expanded laws in 2023. It follows similar policies in San Francisco and Vancouver. The Real Estate Institute of Queensland does not support a vacancy tax, with chief executive Antonia Mercorella saying the state should not 'tax our way out of the housing crisis'. 'Given the shortage of rental properties and recent escalation in property prices, it's important to examine ways that existing housing can be utilised to its full potential,' Mercorella said. 'However, the REIQ does not support a vacancy tax. We do not believe the solution is to pin the problem on property investors.' The Property Council is also reticent. 'We need the right tax settings in place to spur investment,' Kandelaars said. 'Additional property taxes increase holding costs and will deter investment in new housing at the time we need it most.' Housing Minister Sam O'Connor would not be drawn on a vacant land tax in Queensland but acknowledged 'it has never been harder to find a place to call home in Queensland'. He said the state government's plans to abolish stamp duty for first home buyers on new homes would incentivise construction, among other measures. 'We've also removed all barriers for first home owners to allow them to rent out a room which will increase the rental options in the market,' he said.
