New government policies to stimulate regional property growth?
John Edward's from Residex in his September market wrap has an interesting take on how the independents will influence government policy and also possibly begin to influence the residential property market. In particular regional property markets.
His prediction is an interpretation of the politics that sits behind the recent agreement between Labor and the independents. In "Annex B - Commitment to Regional Australia" of the agreement between Labor and the independents, it states:
"The Government understands the need for sustainable population growth for our regions and cities while addressing and acknowledging population growth occurs at different speeds across our great country. We will invest $200 million to help build up to 15,000 more affordable homes in regional cities over three years and relieve pressure on our major capital cities, so that Australia can grow sustainably."
John goes on to point out that:
- the development of 15,000 new homes in Regional Australia suggests a capital outlay in just this area of our economy of something in the order of $3.7 billion.
- this expenditure with the other initiatives the Government is committed to in terms of this agreement and the national Broadband roll out and we have significant capital being injected into our regional cities.
- the recent breaking of the drought could further stimulate economic growth.
Its worth reading the whole piece. A space to keep watching over coming months...