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{{propApi.successMessage}} {{region}} Change locationACT earns wooden spoon in housing rankings
ACT earns wooden spoon in housing rankings
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“The ACT has fallen one spot since the last report to now sits last on the national league table,” said Geordan Murray, HIA ACT & Southern NSW.
“The scorecard measures each state and territories performance on thirteen housing related metrics such as finance, approvals and commencements and benchmarks these to their own long-term average and then compares performance to other jurisdictions.
“The Territory sits last in six of the thirteen metrics and second last in another two. Unsurprisingly, metrics related to detached home building including approvals, starts and work in progress rank last, which has been a long-term weakness for the Territory as people flock across the border to NSW to take advantage of more affordable land.
“This phenomenon might also contribute to the ACT ranking last in net interstate migration. A low migration rate may also reflect an inability for Canberra to attract skills to the Territory, which is no doubt partially attributable to the cost of housing.
“The latest scorecard has also seen a decline in the fortunes of the renovations market and apartment building, both of which have been sectors of relative strength for the local housing market.
“If there is a positive in the report for Canberrans, it is the performance relative to other states and territories of finance to first home buyers, which leads the nation.
“However, the ACT is also the poorest performing when it comes to attracting investors.
“Investors continue to drive the improvement in new home building activity around the nation, accounting for 43% of all loans for new builds in the September quarter. In a building market that is far from full capacity, this part of the economy is essential for delivering new housing to support the rental market.
“Punitive taxation arrangements and an environment unsupportive to property investors in Canberra has forced this important source of housing capital elsewhere. While it suits a narrative, investors are not the reason Australia has a housing problem.
“The ACT government must immediately make good on its promise to relook at the development killing Lease Variation Charge (LVC), encourage private investment in rental property, expedite planning reforms and demand a pro-development approach within all Directorates, statutory authorities and utilities to support Canberra to meet its target of 30,000 homes by 2030,” concluded Mr Murray.
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ACT housing approvals slump puts 2030 target under pressure
“The ACT’s housing supply pipeline is weakening, with building approvals in the three months to August halving compared with a year earlier,” said HIA Executive Director ACT and Southern NSW, Geordan Murray.