As the election approaches, a series of housing reforms introduced by the Federal Government are under scrutiny, drawing attention to the growing tension between rental affordability and property investment.
Australia’s property market has experienced a 0.2% increase, reaching a total value of $11 trillion for its 11.3 million residential dwellings. While this slight increase may seem insignificant, it signals underlying complexities within the housing sector that call for urgent support and intervention.
“The demand for high-quality, sustainable housing has never been greater. Rising taxes, regulatory requirements, and approval processes can create barriers to development,” said Aladdin Kheir, Chief Financial Officer at Arada Group, an Emirati-based global residential construction firm that has delivered multiple large-scale developments in Aljada and Masaar, key precincts in Sharjah.
This data, sourced from the Australian Bureau of Statistics (ABS), is just one of many measures used to track the health of the residential property market. It considers a range of factors including the value of both existing and new dwellings, the number of property transactions across the nation, regional property market performance, land values, and interest rates set by the Reserve Bank of Australia. While this measure offers a snapshot of how the housing market is evolving for investors, it doesn’t address more detailed challenges in the market, such as the supply of qualified trades and skills, the shortage of housing in high-demand areas, or the lack of housing for critical workers, such as healthcare professionals.
“In addition to regulatory hurdles, the construction industry faces a shortage of skilled labour and rising material costs, and extending timelines, making it harder for lower-income families and first-time buyers to enter the market,” Kheir said. “Initiatives like the Housing Delivery Authority (HDA) and the State Significant Development Application (SSDA) pathways have been instrumental in accelerating approvals for high-impact projects.”
“Additionally, the First Home Buyer Grant plays an important role in supporting first-time buyers with financial assistance. However, many first-time buyers are still struggling to cover even a portion of the cost of purchasing a new home as the average price of new homes in key Sydney areas exceeds the grant’s threshold,” Kheir shared.
The First Home Buyer Grant caps the purchase of new homes at $600,000, or $750,000 for a house and land package. Homebuyers must also move into the property within 12 months of settlement and live there for at least 12 continuous months, making the grant suitable for only some Australians.
Other recent Federal Government announcements regarding the housing market have garnered support, including the two-year ban on foreign investment in existing homes and the Help-to-Buy shared equity scheme. This scheme allows eligible first-time homebuyers to purchase property with a shared equity arrangement with the government, requiring significantly lower deposits (typically 5-10%) and reducing overall borrowing from lenders, as the government contributes up to 30% of the property’s value.
For other Australians, the First Home Super Saver (FHSS) scheme, though controversial, provides an additional pathway for first-time homebuyers. It allows individuals to make voluntary contributions to their superannuation, with the option to contribute up to $15,000 per financial year, and a lifetime cap of $50,000. This scheme can help potential buyers secure a home with 100% equity, using their superannuation savings to fund a portion of the purchase.
However, broader challenges surrounding renting continue to demand attention. Some of these issues were at the forefront of a recent two-day policy discussion on “Rebuild Housing” in Sydney, organised by Amplify, a community platform focused on addressing key policy challenges. The discussion shared the urgent need for action on renting affordability and housing supply. Key topics included the repurposing of land for granny flats, tiny homes, and garage conversions, as well as calls for stronger renters’ rights protections and increased investment in social housing.
At the same time, developers are calling for more government action to address their unique challenges. These include the shortfall of qualified skills within Australia and the need to streamline local and state planning structures, both of which are critical to meeting the growing demand for new housing.
“We are committed to working alongside government bodies, industry leaders, and the community to not only deliver housing but also to create environments that enrich people’s lives,” Kheir shared. “Our developments are designed with the future in mind. We remain dedicated to advocating for housing solutions that prioritise quality, affordability, and liveability.”
The Oz Arab Media team has contacted Michael Sukkar MP, Assistant Minister for Housing and Urban Development and Member of Parliament for Deakin, for additional comment.
