Foreign investment is a “key ingredient” in tackling housing affordability and housing supply, says the chief executive of a major property lobby.
The results of the ANZ
/Property Council Survey for the June 2015 quarter show that significant levels of foreign investment is helping bring new housing supply to market.
Property Council of Australia chief executive Ken Morrison says the survey results underscore the fundamental importance of foreign investment in making new housing stock available for Australians.
“The only way to improve housing affordability is to get more housing on the ground earlier, and foreign investment is a key ingredient in making this happen,” he said.
“Foreign investors don’t reduce the availability of housing for Australians, they increase it. Every newly constructed home that a foreign investor purchases enables up to four other homes to be built.”
Morrison has also slammed the government’s proposal which will see foreign investors charged an application fee of $5,000 for properties under $1 million, $10,000 for properties valued between $1-2 million and $10,000 increments for each additional $1 million in value.
“Big new fees on foreign investors will act as a deterrent and without foreign investment new projects will come online later or not at all.
“Introducing a new stamp duty-like fee on foreign investors will actually diminish the supply of housing, and the losers in this equation will be ordinary Australians.
“There is a striking correlation in the data between those states with high confidence and solid forward expectations and those that record solid levels of foreign investment, like NSW and Victoria.”
Continued foreign investment in new housing supply is a critical element to ensuring we meet demand and keep pressure off house prices, says Morrison.