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Perth: Real estate expert warning that labor shortages will cripple the apartment development pipeline

Real estate experts have warned that hidden problems are causing serious problems for home prices, which can have significant spillover effects.

Real estate experts warned that Perth is looking at the barrel of a potential housing crisis as labor shortages support more than one-third of the city’s approved apartment development.

A new report by the Australian Real Estate Council reveals that more than one-third of Perth’s approved apartment development is pending due to lack of skills.

Higher prices have also put another $ 2.2 billion project pending that has not yet been approved.

A report edited by 21 major developers estimates that about 10,000 Perth apartments are lagging behind and real estate prices are rising.

“Financial institutions require projects to have enough margin to cover contingencies and will not lend without it.”

Sandrab Brewer, Executive Director of Property Council WA, said the closure of the Australian border by Covid-19 was primarily due to a shortage of skilled workers.

“We are now facing 150,000 fewer workers than we are,” she told NCA NewsWire.

Soaring construction costs are also causing material shortages that affect builders, Brewer said.

She said having a medium density apartment is “essential” to avoid potential housing and affordable crises in Perth.

“Despite positive policy announcements during the pandemic, such as WA building bonuses and stamp duty refunds for unplanned apartments, long-standing supply shortages and investment shortages are putting pressure on home prices,” Brewer said. He said.

“As housing becomes more expensive, people move down the ladder of real estate, increasing the demand for social housing and putting more people at risk of the homeless.”

According to a Property Council report, Perth’s rental vacancy rate was 0.9% and median home prices rose $ 40,000.

According to sales data for May last year, 20.27% of investors sold and only 5.56% bought.

Encourages SMEs to introduce apprenticeship guarantees and payroll tax relief to facilitate migration to Western Australia, eliminate additional fees for foreign buyers for skilled immigrants, and avoid future supply problems. increase.

at first Real estate experts warn about the potential housing crisis facing a state

Perth: Real estate expert warning that labor shortages will cripple the apartment development pipeline

Source link Perth: Real estate expert warning that labor shortages will cripple the apartment development pipeline

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