In addition to new Federal Laws around property investment, the new financial year brings with it a range of state-based property reforms.
In New South Wales, harsher fines are being introduced in an effort to fight off underquoting by real estate agents. There are new financial penalties for dummy bidding at auction and prices or price guides must now be published on all advertising.
In Victoria changes affect the rental market with the State Government guaranteeing a leaving resident’s bond while moving between properties.
The new Portable Rental Bond Scheme means renters can avoid having two bonds tied up when moving, as the bond from the previous residence can be moved to the new residence for $25.
The Victorian government has also introduced new Home Warranty Insurance which aims to help homeowners who become victims of dodgy tradie work, allowing claims for incomplete, faulty, or defective work on contracts worth more than $20,000.
In the ACT First Home Buyers, pensioners and some National Disability Insurance Scheme participants will no longer have to pay stamp duty. It also applies to owner-occupiers buying new units.
While home price growth has softened across Australia in the past month, values in almost every capital city are still well above the level at the same time last year.
PropTrack’s latest data shows that in June all capital cities recorded a decline in median house price with all drops below 1%. Over the past 12 months, the only capital city to record a drop is Melbourne which is down 1.1%.
It is the regional markets that continue to perform well, with all but one (regional Queensland, down by 0.1%) showing growth in June – albeit all below 1%. Regional markets are all well up on the same time last year.
PropTrack senior economist Anne Flaherty says regional markets remained at record highs during June and over the past 12 months.
Regional Western Australia has the strongest growth over the past 12 months of 16.9%, followed by regional Tasmania (13.6%), regional South Australia (12.7%), and regional Queensland (11.5%).
“Looking ahead, affordability is likely to remain a key driver of market performance, with the share of buyers looking to purchase in more affordable areas, such as regional markets, expected to increase,” Flaherty says.
Development of Build-to-Rent (BTR) projects is becoming increasingly important as changes to taxation rules are tipped to reduce the rental pool.
According to Cushman & Wakefield, International Head of Living, Conal Newland, BTR is no longer a niche investment class but an essential component of rental property supply.
He says investors in BTR are focusing on long-term fundamentals rather than short-term conditions and that the sector has emerged as a recognised asset class.
Newland says improved planning certainty, faster approvals and greater policy consistency are essential if the BTR sector is to reach its full potential.
“As Australia continues to confront housing affordability and supply challenges, Build-to-Rent will not be the sole answer. But it is rapidly becoming one of the most important pieces of the solution,” Newland says.
Despite it becoming more popular and increasingly a core component of global institutional portfolios, he says it is not a standalone solution to Australia’s housing challenges.