Last month the Andrews government released their long-awaited housing reform policies.
The good news? The government is doing something to accommodate the housing shortage and the lack of rental accommodation as well as affordable housing.
The bad news is that many experts doubt the efficacy of the proposed changes and the news could even turn ugly if the proposed strategies actually have a negative impact on the availability of both short-stay accommodation and long term, affordable, rental housing.
How? Imposing a 7.5% levy on short-term rentals such as Airbnb and Stayz may NOT encourage landlords to transition to long-term rentals as the government hopes, but instead cause a relative price rise with a negative flow-on effect to the recovering tourism industry.
As investors are leaving the property market in droves, the government’s rental reform package is hardly likely to entice them back. And while the reforms aim to provide better security for tenants, it doesn’t provide them with what they need most – landlords with homes to rent.
The changes to design standards for high density living are an admirable aspect of the reform policy however, identifying a need for more spacious, light and energy-efficient homes near transport hubs. And developers have been incentivised to build in priority precincts by faster approval processes and taller height limits, with a requirement for just 10% of the build to be affordable housing. Good news for them!
But is 10% enough to address the urgent need for affordable homes? And in the midst of a housing crisis, where will the current tenants live while these newer, taller, lighter apartment blocks are being built in already high density areas?
We can only wait and see if the proposed reforms turns out to be good, bad, or ugly.
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