Connect with us
https://tickernews.co/wp-content/uploads/2023/10/AmEx-Thought-Leaders.jpg

Property

Building costs, not interest rates, are killing housing affordability

Published

3 weeks ago

on

Terry Ryder exposes how government taxes, red tape, and soaring construction costs—not “greedy developers” or interest rates—are the real culprits behind Australia’s worsening housing crisis.

The real barrier to fixing the housing crisis

The single biggest issue preventing solutions to the housing shortage in Australia at the moment is the incredibly high cost of building new dwellings.

It is also what is having the biggest impact on housing affordability, not high interest rates as some would have you believe.

Nearing a million-dollar price tag

The official data shows that the median price for home sites in capital cities is now around $420,000, and the average cost of building a new house is $530,000.

That means it’s getting close to a million dollars to create a new house and land package in our capital cities.

Not just about “greedy developers”

Despite what some suggest these high costs are not all as a result of “greedy developers” trying to screw every last dollar out of hapless buyers.

The Housing Industry Association (HIA) has released some interesting data which shows that government fees and account for about half the cost of a new house and land package in cities like Sydney.

That effectively means about 15 years of loan repayments (on a 30-year loan) go toward paying off that portion of cost of a home.

Industry survey reveals key obstacles

The Residential Property Survey, published each quarter by National Australia Bank, asked industry professionals what the barriers were preventing the construction of new housing, amid the worst housing crisis in the nation’s history.

Almost three-quarters (71%) of respondents said that construction costs were the main hurdle to starting new housing developments.

When you understand that between 40% and 50% of the cost of creating a new dwelling is taxes, fees and charges at all three levels of government, you realise that government is the single biggest cause of the hideously high cost of building new homes.

Red tape and falling productivity

Adding to that is the red tape that causes delays in building new homes. In the NAB survey, 62% of respondents said delays in achieving approvals to build homes was a major issue preventing new housing supply being achieved.

A report from the Productivity Commission found that the residential construction industry is half as productive today as it was 30 years ago. That means we were building homes twice as fast in the 1990s compared to now. And the report blamed bureaucracy as the biggest factor.

More pressure on prices and rents

Other smaller issues affecting supply according to the survey are a shortage of tradespeople, lack of development sites and high interest rates.

The ongoing shortages of homes – which will continue for the foreseeable future – means that there will be upward pressures on prices and rents for years to come.

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

Related Topics:
Continue Reading

Property

Finance and philanthropy: Reventon CEO leads with purpose

Chris Christofi: Reventon CEO and philanthropist celebrates 8 years with St Vincent de Paul, empowering Australians to grow wealth.

Published

1 week ago

on

June 9, 2025

By

Reventon CEO and philanthropist celebrates 8 years with St Vincent de Paul, empowering Australians to grow wealth.

 

In Short:
In this episode, Tim Graham interviews Chris Christofi, the CEO of Reventon, a leading Australian financial services firm focused on property investment. Chris is also a dedicated philanthropist, raising funds for vulnerable communities through his role as an ambassador for St Vincent de Paul for eight years.

In this episode, Tim Graham interviews Chris Christofi, the CEO and Founder of Reventon.

Reventon is recognised as one of Australia’s leading holistic financial services firms.

The company aims to assist everyday Australians in growing their wealth through property investment.

Beyond his business achievements, Chris is dedicated to philanthropy.

He has committed himself to raising essential funds for those in need.

Chris works with St Vincent de Paul, an organisation focused on helping vulnerable communities.

This year signifies Chris’s eighth year serving as an ambassador for the charity.

His ongoing efforts highlight the importance of giving back while achieving personal success.

The conversation delves into both Chris’s business insights and his charitable initiatives.

The Property Playbook is a dynamic real estate show that empowers investors and professionals with the insights and strategies needed to achieve strong returns in the Australian property market. Hosted by Tim Graham & Terry Ryder from Hotspotting.

Continue Reading

Property

Marshall White Director cracks Melbourne’s Luxury property code

Tim Graham interviews Nicholas Brooks on his journey from New York commodities trading to Melbourne’s luxury property market insights.

Published

1 week ago

on

June 9, 2025

By

The former NYC trader turned Marshall White director shares market insights, the apartment rebound, and tips to sell prestige homes at a premium.

 

In Short:
In this episode of The Property Playbook, Tim Graham interviews Nicholas Brooks, who transitioned from commodity trading in New York to Melbourne’s luxury property market. They discuss market influences, the apartment resurgence, and effective marketing strategies for sellers aiming to maximise property prices.

In this episode, Tim Graham interviews Nicholas Brooks, Director of Marshall White Stonnington.

Nicholas shares his unconventional path from trading commodities in New York City to specialising in Melbourne’s luxury property market.

The discussion includes insights into Melbourne’s luxury sector and how both international and local markets influence high-end properties.

Nicholas also addresses the recent resurgence of the apartment market in Melbourne.

He emphasises the importance of effective marketing in selling higher-end properties.

Nicholas provides recommendations for sellers looking to achieve the best price in today’s market.

The interview offers valuable perspectives for anyone interested in the dynamics of luxury real estate in Melbourne.

The Property Playbook is a dynamic real estate show that empowers investors and professionals with the insights and strategies needed to achieve strong returns in the Australian property market. Hosted by Tim Graham & Terry Ryder from Hotspotting.

Continue Reading

Property

The illusion of affordability in Australia’s housing market

Published

2 weeks ago

on

June 5, 2025

By

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.

Continue Reading

Trending Now