Budget is great news for real estate – if forecasts become reality: REIA

The Real Estate Institute of Australia has cautiously welcomed the Federal Budget, saying it provides an encouraging outlook for all players in the Australian property market, but is contingent on the Government’s forecasts coming to pass.

“The Australian Government’s focus on creating employment and generating re-employment through various Budget measures is welcomed by REIA and is good news for tenants, investors, home owners and those wishing to sell,” REIA President Adrian Kelly said.

“Economic activity is forecast to pick up strongly from late 2020 and into early 2021, driven by a further easing of COVID-19 containment measures and improving business and consumer confidence.

“That being said, we need to be realistic about the challenges the global pandemic, and the Budget’s forecast may prove to be optimistic given the uncertainty of overcoming of COVID and the re-opening of borders.”

Mr Kelly said the amendment of the First Home Buyers scheme represents a lost opportunity.

“The First Home Buyer Deposit Scheme should be extended to all eligible buyers of all homes, not just new builds,” Mr Kelly said, noting that lobbying for this is a priority for REIA moving into 2021.

“The investment in regional infrastructure is beneficial and will reinforce the growth currently being seen in Australia’s regions at the moment as a result of changing demographics driven by the COVID-19 policy and economic response,” Mr Kelly continued.

Mr Kelly said that the boost to affordable housing was a welcome and necessary move from the Government.

“COVID-19 has highlighted that the private sector are carrying most of the load to support our tenants and the government-led affordable housing commitment for NHFIC in the form of $1 billion dollars is most welcomed.”

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