The Property Council of Australia has endorsed recent findings from the National Housing Finance and Investment Corporation (NHFIC) which outlines barriers that prevent international investment in the affordable housing sector.
Council CEO Mike Zorbas says the research underlines why legislation regarding international investment, which is currently in front of the Senate, should be fast tracked given the nationwide affordable housing shortage.
Australia faces a stark reality; we are not planning for, or supplying, enough homes across the housing spectrum,” he says. Gateway reforms like the Housing Australia Future Fund and National Housing Supply and Affordability Council must pass the Australian parliament without delay. Australia will fail to address the housing gap until we bring down the cost of buying and renting homes by improving our state planning systems, unlocking further supply by becoming the first choice for global capital, as partly anticipated by the national Housing Accord.
“Our reputation for welcoming housing investment must be on par with the UK and US as this report highlights. We need to level the playing field for new build-to-rent housing, purpose-built student accommodation and retirement living communities.”
The NHFIC found a number of barriers put the stops on international investment, including insufficient returns, insufficient scale, a lack of information on opportunities, a lack of data on vacancy risks, the need to partner with community housing providers to manage tenancies and access tax incentives, the reputational risks of managing subsidized housing tenancies, and unfavorable market conditions. There is an urgent need to accelerate the supply of social and affordable housing. The playbook is there for Australia to adopt: longstanding government-backed finance, enduring subsidies and incentives including tax credits, and preferential planning treatment.
