Australian Treasurer Wayne Swan said that federal and state governments need to do more to boost the supply of housing, particularly given an existing shortage and the country’s growing population. “We’ve got to get ahead of the curve. We’ve not been building enough houses and we have strong population growth so it will be very important as we move through to economic recovery to ensure we don’t have capacity constraints that flow from the shortage of housing,” he told reporters. The treasurer’s comments echo similar remarks from the Reserve Bank of Australia, which is concerned that the limited supply of new housing could push up prices. Swan also reiterated the government stimulus programs had peaked and would continue to diminish during 2010.

Land Prices

Prices paid for land in Australia increased for the second consecutive quarter in the three months to June, with Sydney remaining the most expensive place to buy, according to an industry survey. Policy makers are closely watching the supply and pricing of land for housing and have repeatedly cautioned of the need for more property developments to offset rising house prices and subsequent imbalances. Land in Sydney has a median price tag of $255,000. The cheapest land is to be found in Mallee, Victoria, with a median price of $70,000. Total land sales grew 1.3% in the three months to the end of June compared to the same period last year. In moving to tighten historically loose policy in October, the Reserve Bank of Australia has said it is attempting to address any imbalances before they build up, specifically highlighting house prices.

Carbon Trading

Australia’s key export industries would still face the toughest emissions trading scheme in the world even if the centre-left Labor government agrees to amend its current carbon trading plan to meet a series of concessions proposed by conservative opposition lawmakers, the Minerals Council of Australia said. An analysis of the Australian scheme prepared for the mining lobby by BAEconomics found that up to 38 business sectors — including food processing, manufacturing, auto exports, mining and minerals processing — would be better off under a European Union-style scheme, Minerals Council Chief Executive Mitch Hooke said.

Australia accounts for only around 1.5% of global emissions but is the biggest per capita polluter in the developed world due to its heavy reliance on fossil fuels, chiefly coal, for around 90% of its electricity generation. Legislation currently before Parliament, if passed, would see Australia adopt a market-based carbon-trading system in July 2011. The scheme is similar to one in Europe that caps carbon dioxide emissions by the likes of power generators and steel and cement makers. The aim by 2020 is to reduce Australia’s greenhouse gas emissions by at least 5% from their level in the year 2000.

Australia’s Labor government and the main opposition conservative Liberal-National coalition are currently negotiating over a series of amendments to the carbon scheme proposed by coalition leader Malcolm Turnbull earlier this month. The conservative coalition is seeking better protection for key export industries, including coal mining, food processing, natural gas, aluminium and agriculture under the proposed cap-and-trade carbon scheme. The Labor government won a majority in Australia’s lower House of Representatives in a 2007 federal election. But it currently needs to win at least seven Senate votes – either from the main conservative coalition, or all seven minor party senators – to pass any new laws.

Leo Gennusa- Franchise Principal – Baulkham Hills
Cert IV (F/MB).
T: 02 8852 8100 F: 02 8852 8122 M: 0404 066 277

E: Leo.Gennusa@aussie.com.au

Mortgage Broker of the Year – Australian Banking & Finance Magazine Awards 2009

This entry was posted on Wednesday, October 28th, 2009 at 4:17 am and is filed under Local Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.