Property

The hidden costs driving Australia’s housing crisis

Published

6 months ago

September 12, 2025

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.

Property

First-home buyers driving Australia’s rising housing prices

First home buyers drive Australia’s housing market growth with government support, defying claims of being “locked out”

Published

5 days ago

February 26, 2026

Harvey Vargas

First-home buyers drive Australia’s housing market growth with government support, defying claims of being locked out

In Short:
– First-home buyers are influencing Australia’s housing market through government support, leading to rising prices.
– They benefit from lower deposits, stamp duty waivers, and grants while also driving demand in regional areas.

First-home buyers are impacting Australia’s housing market significantly through government schemes and tax benefits, leading to rising prices. Terry Ryder, founder of Hotspotting, indicates that these buyers are a dominant force, supported by federal and state backing. These buyers enjoy several advantages. Federal schemes allow a mere 5% deposit without incurring Lenders Mortgage Insurance. In New South Wales, a stamp duty waiver for properties up to $700,000 offers further financial relief. Various states and territories provide grants for purchasing or building new homes.

Recent data from the Australian Bureau of Statistics reveals a 7% rise in loans to first-home buyers, marking the highest quarterly increase since 2023. In New South Wales, this increase reached 11%, indicating a surge in lending to newcomers in real estate.

Ryder challenges the idea that first-home buyers are “locked out” of the market, stating that while high prices present challenges, government support facilitates access. The current market shows medium-level price growth nationwide due to supply shortages alongside strong demand driven primarily by first home buyer activity.

Ryder also mentions potential risks in changing Capital Gains Tax and negative gearing rules, highlighting the importance of small investors who supply over 90% of rental homes in Australia.

Property

Australia’s $15bn housing plan faces soaring costs and policy hurdles

Australia’s housing goal faces $15.2 billion cost surge, raising doubts about affordability reforms amidst global cautionary lessons.

Published

1 month ago

January 21, 2026

Harvey Vargas

Australia’s housing goal faces $15.2 billion cost surge, raising doubts about affordability reforms amidst global cautionary lessons.

Australia’s ambitious plan to build 1.2 million new homes by 2029 is under pressure, with projected costs now soaring to $15.2 billion—$3.8 billion higher than Treasury forecast last year. The surge has raised serious questions about whether the target is achievable and what reforms could actually make housing more affordable.

Terry Ryder from Hotspotting explains how construction bottlenecks, labour shortages, and rising materials costs are slowing progress. He also warns that first-homebuyer grants may be ironically pushing prices higher rather than helping, and that deregulation and skilled migration could be crucial to achieving housing goals.

Looking overseas, failed housing strategies in the US, UK, Canada, and New Zealand offer cautionary lessons for Australia. Ryder highlights how these challenges will not only affect first-time buyers but also investors and broader property market confidence, making reform urgent if the housing crisis is to be addressed.

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Property

Blackstone acquires Hamilton Island for $1.2 billion

Blackstone acquires Hamilton Island for $1.2 billion, marking a major move in Australia’s hospitality sector

Published

2 months ago

December 24, 2025

Harvey Vargas

Blackstone acquires Hamilton Island for $1.2 billion, marking a major move in Australia’s hospitality sector

In Short:
– Blackstone will acquire Hamilton Island for approximately $1.2 billion, ending Oatley family’s twenty-year ownership.
– The acquisition aims to enhance Blackstone’s hospitality presence in Australia while supporting the local community.

US private equity giant Blackstone has agreed to acquire Hamilton Island for approximately $1.2 billion, marking the end of more than two decades of ownership by the Oatley family. The acquisition, pending regulatory approval, represents a strategic expansion of Blackstone’s footprint in Australia’s hospitality sector. Chris Heady, Blackstone’s Chairman of Asia Pacific, emphasized the firm’s commitment to the island’s long-term success and its local community.

Key gateway

Hamilton Island, spanning over 2,800 acres, features five hotels, more than 20 dining venues, an 18-hole golf course, a marina, and its own commercial airport. As a key gateway to the Great Barrier Reef and the Whitsundays, the resort has become a cornerstone of the region’s tourism and hospitality industry.

The Oatley family, who bought the island in 2003 for around $200 million, invested over $350 million into upgrades, including the luxury resort qualia. Expressing satisfaction with the partnership, the family highlighted Blackstone’s role in continuing their legacy while supporting local employees and businesses. Hamilton Island plays a significant role in the Whitsundays’ economy, creating employment opportunities and sustaining the local tourism sector.