News roundup: Housing to be an election battleground in Australia, plus other stories

For PropertyGuru’s real estate news roundup, housing will be a major focal point in the upcoming federal election in Australia. In other headlines, know where property prices are rising rapidly this year in India, and the Vietnam government fast-tracks the enforcement of housing and real estate business laws.

Housing looms as an election battleground in Australia, but there are no quick fixes

In the wake of the federal budget, it is clear that housing will be a major focal point in the upcoming federal election. For the first time, the Budget Papers dedicated an entire chapter – 42 pages – to the housing problem.

They laid out the problem in stark terms.

“Australia has a housing shortage. There are not enough homes being built in the right areas to meet the needs of our communities. This statement focuses on the reasons for the current under-supply of housing, how it affects affordability, and the changes required to more quickly unlock supply to meet the housing needs of all Australians.”

The budget lists several measures to tackle the issue, including AUD1.9 billion in government-backed loans for social and affordable housing, an additional AUD1 billion to support new housing infrastructure across the states and territories, a AUD1.9 billion boost to support a 10 percent increase in Commonwealth Rent Assistance, and AUD423 million towards the national agreement on social housing and homelessness.

Two days later, in his budget reply, opposition leader Peter Dutton also emphasised the housing crisis – though his solutions differ. “We’re also facing a housing crisis … Australians are struggling to find homes to rent and buy – and not always due to a lack of money,” he said.

Mr Dutton proposed three immediate solutions to housing challenges: allowing first-home buyers to access up to AUD50,000 from their superannuation for their first home, reducing migration to ease demand, and implementing a two-year ban on foreign property buyers.

According to realcommercial.com.au, more proposals from the Coalition are expected in the coming months.

Spotlight on growth: Know where property prices are rising rapidly this year in India  

The residential real estate market of India has observed remarkable behavioural shifts in recent times. During the first quarter of 2024, there was a noticeable increase in demand for luxury properties across the eight major cities of the country, with a considerable 37 percent of residential transactions focused on properties priced at INR 1 crore and above. This uptick in luxury property sales signifies a notable change in market dynamics, particularly given the steady expansion of this segment since the pandemic began. Before the pandemic in 2019, high-end properties constituted only 11 percent of total sales, underscoring a significant shift in consumer preferences and buying patterns.

Since 2021, the country’s residential market has undergone a remarkable transformation, with property prices soaring to unprecedented heights. The trajectory of this change is starkly evident when comparing the figures to pre-pandemic times, showcasing a phenomenal 29 percent increase from Q4 2019. This surge, marked by consistent year-on-year growth of 6–8 percent, has propelled previously sluggish markets into a dynamic landscape characterized by robust price increases.

In the first quarter of 2024, the national average for property prices registered a respectable 9 percent year-over-year growth. However, certain key areas have experienced an even more dramatic surge, with some witnessing price increases exceeding an incredible 20 percent.

The city-wise trend in the Housing.com report paints a compelling picture of the real estate landscape, with prices appreciating across the top metros.

Vietnam government fast-tracks enforcement of housing, real estate business laws

The Government on 17th May issued a Resolution approving the proposal to draft amendments to the Housing Law and the Real Estate Business Law, specifically Clause 1 of Article 197 and Clause 1 of Article 82, respectively.

VietnamPlus reports both laws were ratified by the National Assembly in November 2023, with their effective date set for 1 January 2025. However, the Government put forth a proposal for these laws to take effect from 1 July 2024, six months earlier.

The Property Report editors wrote this article. For more information, email: [email protected].