“Like all growth assets, property values can both rise and fall over the short term, however the long-term trajectory has consistently been upward. This is clearly evidenced by Australian Bureau of Statistics (ABS) data,” said Mr Raine. Mr Raine added, “The Federal Government’s 2022-23 Migration Program[ii] allows for 160,000 new immigrants to Australia over the next 12 months. This will continue to drive demand for housing.

“Looking ahead, the National Housing Finance and Investment Corporation[iii] (NHFIC) reported in February 2022 that more than 1.7 million new households are expected to form across Australia from 2022 to 2032. And from 2025 to 2032, Australia is expected to face a supply shortfall of 163,400 homes.

“In light of these statistics, it is hard to take seriously any claims of a property market crash,” said Mr Raine. 

“Given the extreme volatility we are currently seeing on share markets globally, I would expect more Australians to embrace property as a primary investment choice, which will lend further support to housing prices.”

Change is needed

Mr Raine acknowledges that structural change is needed to make the property market accessible to younger generations of Australians and maintain affordability within rental markets.

“I applaud the New South Wales State Government for giving home buyers the option to bypass lump sum stamp duty,” said Mr Raine.

“Sydney currently has a median home value of $1,120,836[iv] Yet the stamp duty on this amounts to $46,525[v]. The average annual salary in Sydney is $77,000[vi], so the State Government is taxing Sydneysiders 60 per cent of one year’s income just to buy a home to live in.

“This is an impost that is grossly unfair and simply not sustainable.”

[i] https://www.news.com.au/finance/real-estate/australian-house-price-decline-set-to-accelerate-expert-warns/news-story/f968badb0345b3ebea963edf2aa30a5a