Today, Cate and Mike delve into a wide range of government incentives, legislative changes, and initiatives impacting the property market. Have these measures achieved their intended goals, or have they brought about unintended consequences?
“Lack of consultation is likely a root cause of some of these negative outcomes.”
One prime example is the recent Victorian rental minimum standards. Cate highlights how some broad recommendations lacked practicality, leading to challenges in the property market. Investor-led sales, particularly involving older houses in need of renovation, have also skewed both the sales and rental sectors of the property market.
From the Pink Batts scheme to the rise of cottage industries, the duo examines some of the less successful policy outcomes.
Mike touches on land tax, pointing to Queensland’s now-repealed land tax legislation. Data from Mike’s company revealed that this policy led to a 17.8% drop in investment activity over just 98 days—a significant impact on the property market. This highlights the critical role data plays in understanding market dynamics.
Shifting the focus from sales to buyer behavior, Mike and Cate explore stamp duty concessions. They discuss how concessional thresholds affect the property market, with some states implementing effective policies while others miss the mark. Cate references the Victorian COVID recovery stamp duty stimulus, explaining its influence on median sale prices and property market segmentation.
Market distortions caused by concessions and legislative measures are a recurring theme. Tackling underquoting, for example, remains a significant challenge. Quoting regulations differ across states and territories, and in some cases, efforts to address the problem have inadvertently made it worse.
Rent-bidding legislation is another contentious issue. Cate and Mike analyze its effects on the rental side of the property market and discuss whether such interventions have delivered the desired results.
Lastly, the duo reflects on the legacy of the HomeBuilder grant. While aimed at stimulating the property market, it faced hurdles such as trade shortages and unrealistic deadlines. Cate notes that market distortion was a key problem, while Mike highlights a 33% increase in material costs during the COVID period.
From policy missteps to unintended consequences, this discussion offers valuable insights into the complexities of managing a healthy and balanced property market. Tune in to hear more about these pivotal issues.
