Residential Market Update – Stamp Duty and Housing Affordability
Industry experts came together at PwC’s Barangaroo office to discuss the recent Stamp Duty changes and consequential impacts on housing affordability.
Colliers International and PwC were delighted to have had the opportunity to deliver this event in partnership with the valued sponsor Bright & Duggan.
Joining Peter Chittenden, Managing Director of Residential at Colliers International were Andrew Wheeler, Partner, Legal at PwC, Nerida Conisbee, Chief Economist at REA Group, Chris Johnson, CEO of Urban Taskforce and Costa Koutsis, Partner, Stamp Duty at PwC.
The event attracted a cross section of the residential development sector keen to better understand the current market and the recent policy changes.
Peter Chittenden outlined his views on the market around current drivers and challenges, including record low interest rates, State infrastructure investment and restrictive local lending to foreign buyers and constraints on construction.
Using the case studies of Aqualuna at Milsons Point, Wonderland at Central Park, Archibald at Bondi Junction and West End in Glebe, Peter identified the latest trends in the residential sector:
- Buyers are shifting from investors to owner occupiers
- First home buyers are forecasted to be more active
- Flight to quality – premium price
- Strong demand for boutique projects in premium locations
- Increasing demand for medium density housing, for example townhouses and terraces
- While the number of enquiries are down, enquiries are more qualified
- Longer lead time to meet pre-sale requirements
- Banks will continue to tighten lending conditions to mitigate risk.
The panel discussion ensured for a lively debate of the issues and participants were able to shed light on a number of complex questions from the audience.
For further information and analysis please contact our Residential team.