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Property

The illusion of affordability in Australia’s housing market

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It’s become increasingly obvious when it comes to discussion about the property market that the word “affordable” is a marketing tool for politicians rather than a genuine concept.

Politicians of all levels and persuasions love to announce policies or projects which they say will deliver affordable dwellings in their major cities.

But there’s one glaring absence amid the propaganda which makes it clear that these occasions are publicity opportunities rather than honest attempts to provide solutions to the festering problem of expensive housing.

The glaring absence is pricing.

There is always the claim that they will build affordable dwellings but there are never – and I do mean NEVER – any numbers. How much will the homes cost? We are never told.

Because the harsh reality is that it’s not possible to build new homes in our cities and make them available at prices that anyone would label “affordable”.

Construction costs have risen substantially since the start of the pandemic and in some states half the cost of a new house and land package is made up of government fees and taxes.

The notion of affordable new dwellings is a mirage created by our elected representatives.

Policy debates continue to rage over short-term fixes like rent caps, Airbnb bans and vacant property taxes but these will not fix the issue.

It sounds good politically, but it doesn’t build homes.

Brisbane Lord Mayor Adrian Schrinner has announced a planning review of zoning laws which could allow more development and higher density. This he says will deliver more affordable housing. He didn’t announce any potential price points though.

It all sounds good in theory but in practice will do little to deliver desperately needed homes as an affordable price point.

The challenge will be managing community pushback. And the biggest issue of all – the high cost of building homes.

In New South Wales, where the cost of a new house and land package is around $1.2 million, Premier Chris Minns says he’s facilitating the creation of affordable homes everywhere.

He hasn’t released any figures on what those levels of affordability are. His latest work of affordability fiction relates to a development site in the Inner West of Sydney, where you typically pay well over $2 million for a house.

The next time you see one of our many politicians proclaiming to the media their latest scheme to build affordable dwellings – be sceptical.

Terry Ryder is the Founder of Hotspotting and Host of  The Property Playbook on Ticker.

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Property

Investors discover 25 top house markets for growth

New report reveals 25 Australian suburbs offering strong rental growth, affordability, and investment potential

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New report reveals 25 Australian suburbs offering strong rental growth, affordability, and investment potential

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In Short:
– New research identifies 25 Australian house markets offering affordability, yield, and growth for investors.
– Strong local economies and infrastructure investments drive demand in these markets, ensuring long-term capital growth.
As rental markets tighten across Australia, new research identifies 25 house markets where investors find a strong match of affordability, yield, and growth.
The latest Pulse report by Washington Brown and Hotspotting highlights suburbs outperforming national trends, offering sustainable investment opportunities.
The list includes regions from New South Wales, the Northern Territory, Queensland, Tasmania, and Victoria.Banner

These selections are based on solid fundamentals, including strong local economies, infrastructure investments, and low vacancy rates, according to Hotspotting General Manager Tim Graham.

The report emphasises the potential for cashflow-positive outcomes without sacrificing long-term capital growth.

“These are not speculative picks,” Hotspotting General Manager Tim Graham said.

“They’re backed by real fundamentals, including strong local economies, infrastructure investment, and low vacancy rates.

“We’re identifying locations where investors can achieve cashflow-positive outcomes without sacrificing long-term capital growth.”

Strong Markets

Examples include Park Avenue in Rockhampton, which experienced a 29.1% annual price increase, and Lismore in New South Wales, surging 26.8% despite flood recovery efforts. Washington Brown Director Tyron Hyde notes that these markets are resilient and attract strategic investors focused on long-term growth rather than short-term returns.

“These markets are resilient, affordable, and on the move,” Mr Hyde said.

“They’re attracting investors who are thinking strategically and not just chasing short-term returns, which is always a bad idea.”

Regions like Victoria’s Red Cliffs and Mooroopna, as well as Northern Territory’s Moulden and Rosebery and Tasmania’s Ravenswood, signify a shift towards regional centres with increasing demand and infrastructure development.


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Property

Why government policies keep driving property prices higher

“New book reveals politicians’ policies inflate property values, making homes less affordable; insights for buyers from Terry Ryder.”

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“New book reveals politicians’ policies inflate property values, making homes less affordable; insights for buyers from Terry Ryder.”


Politicians often speak about housing affordability, but a new book reveals how their policies are in fact fuelling higher property values and making homes less affordable. Terry Ryder from Hotspotting joins to discuss his new book Why Property Values Rise.

We explore what politicians really want when it comes to property prices, how location myths mislead buyers, and why luxury features like pools or prestige suburbs aren’t what really drive value.

Ryder also explains how constant change shapes the housing market, what myths investors should ignore, and the key insights every buyer needs to know.


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Property

The hidden costs driving Australia’s housing crisis

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The biggest single problem causing Australia’s housing crisis is the cost of creating new dwellings.

The cost of the standard city house-and-land package is now $950,000 and is getting scarily close to $1 million for a newly constructed house in our capital cities.

Governments of all levels and persuasions tell us constantly that they desperately want to improve housing affordability, but what few of them shout about as loudly is that about 40% of the cost of new housing is made up of government taxes, fees and charges.

It seems incongruous that when cost is the biggest factor preventing new dwellings from being built, governments, which promise they are working on solutions, are doing nothing to ease the tax burden.

Builders and developers cannot deliver their normal products because the cost of construction is prohibitively high.

Earlier this year, the Productivity Commission revealed that government interference and bureaucracy had massively reduced productivity in the building industry.

Delays double the timeline

It now takes twice as long to deliver a new home compared to the 1990s.

This alone added considerable cost to new homes to the point where it is often no longer financially viable to build.

Recent analysis by the National Australia Bank confirms this. Its quarterly Residential Property Survey found that high construction costs and delays in getting approvals are by far the biggest barriers to producing new homes across Australia.

While much of the media would have us believe that interest rates are a big barrier, that was not the case, with very few of the survey respondents nominating that or tight finance as an issue.

It doesn’t matter how many new homes the Federal Government says it will build: until the issues of bureaucratic delays, high property taxes and the overall cost of construction are dealt with, building targets will not be met and the shortage will remain.

Terry Ryder is the Founder of Hotspotting and Host of  The Property Playbook on Ticker.

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