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Wednesday, 31 October 2018

Dearth of public sector approvals

Public eye

It's interesting to look back in time to note how the public sector once built a good deal of the housing Australia.

That dynamic essentially dried up a couple of decades ago as construction was flick-passed to the private sector, although there was a temporary spate of public sector building during the financial crisis in order to stimulate the economy.

The wash-up from the Rudd stimulus aside, public sector approvals are now tracking at the lowest levels on record, essentially at a level to only replace stock obsolescence, but add nothing to the dwelling stock (click to expand the chart).

Australia's rental stock is now supplied by private landlords, while the Labor party is proposing to increase capital gains tax for investors (sorry, reduce the tax 'discount', lol), and snap off negative gearing benefits for prospective investors in established properties. 

Well, OK...good luck with that.

Meanwhile in Canberra the unhinged land tax grab moves seamlessly from the sublime to the socialist, with rent controls apparently now the latest proposed wheeze!

You'd think that chasing even more investors away from the ACT wouldn't be front of mind with the vacancy rate crashing to the lowest level on record at an excruciating ½ per cent.

Meanwhile Canberra has achieved the dubiously impressive mantle of ousting Sydney as the most expensive place in the nation to rent a house. 

Way to go.