Homelessness ‘likely to worsen’ after election: property advisor

Please note: The reposted article below is owned and published by Bay Post Moruya Examiner and Narooma News, where Property Advisor Colin Lee has provided expert opinion on the property market.

A property advisor says homelessness is likely to worsen after the Federal Election on May 21 regardless of who wins due to investors holding off on development applications.

Colin Lee, founder of Inspire Realty based in Brisbane, said investors and developers were holding off on developments until after the election results were announced.

“Every developers I have spoken with nationally in the past three weeks has been waiting and seeing what the new government will put into place on negative gearing,” he said.

“Some of these developers are waiting to spend millions of dollars on developments ranging from four-to-five townhouses all the way to high-rise unit developments.

“They want some certainty going forward.”

Mr Lee said this would lead to increased rental and sales prices as demand would continue to outstrip supply around the country.

“We will be even worse off because of this,” he said.

“Property prices will not go down. People need a place to live and property is in high demand from renters and buyers.”

Domain’s latest Rental Vacancy Report found the national vacancy rate had fallen to one per cent in March, with all capital cities operating in a “landlord’s market”.

Many parts of the South Coast are in a similar position to the capital cities.

Mr Lee said landlords in competitive markets such as the Eurobodalla Shire were being “inundated” with applications amid the shortage of available rentals, and tenants were offering above the advertised price.

Agents have also reported some renters offering “up to a year’s rent” in advance to secure a property.”

Mr Lee said the pressure on the property market had increased since the reopening of both international and domestic borders.

“Some people predicted properties would go down about 20 per cent during COVID, but they’ve gone up 20 per cent,” he said.

“It’s about time in property rather than timing the property. Homes aren’t being built fast enough to accommodate demand, and we have a ferocious appetite from overseas.”

He said the homelessness issue would continue to escalate with women in their 50s and 60s the fastest-growing homeless group.

“In 2016 the ABS reported there were 116,000 homeless people across Australia,” he said.

“Now, there are more than 290,000 people and growing according to Launch Housing.”