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Speaker 1: You heard it on five double A news throughout the

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Speaker 1: morning that capital city house prices right around the country

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Speaker 1: are the least affordable in the English speaking world. Adelaide

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Speaker 1: is no exception to this, and prices are on par

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Speaker 1: with some of the big cities around the world Miami,

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Speaker 1: Greater London in capital cities. Here prop track data showing

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Speaker 1: median house prices in the seven to eight hundred thousand

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Speaker 1: dollars range around the country. And that's median now. It

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Speaker 1: used to be three to four hundred, not a couple

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Speaker 1: of years ago, I reckon. But it's just about doubled,

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Speaker 1: which is I suppose if you own your own home,

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Speaker 1: that is good news, but you're on par with everyone else.

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Speaker 1: So trying to buy you a bigger home or moving

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Speaker 1: up a step is going to cost you as much

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Speaker 1: more now proportionally as it would have three or four

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Speaker 1: years ago, because you're not alone in having your property

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Speaker 1: valued at more. But the fact that we're amongst the

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Speaker 1: world's least affordable Adelated the top ten, is not good news.

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Speaker 1: CEO of Real Estate Institute of Essay is Andrea Harding

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Speaker 1: Well not good news if you're trying to break in.

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Speaker 1: Certainly Andre are good morning.

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Speaker 2: Oh, good morning, Matthew.

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Speaker 1: What do you make of this? The real estate value

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Speaker 1: to this level? Is that good?

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Speaker 2: Well, I suppose not if you're trying to enter the

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Speaker 2: market and the first time buy. As we know that's

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Speaker 2: being addressed in the latest budget. That's come true in

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Speaker 2: regards to new homes and lands build and the removal

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Speaker 2: of stamp duty. But I think also, Matthew, the big

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Speaker 2: thing is is that it's a reflection of a supply

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Speaker 2: issue as well. So when properties are being listed on

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Speaker 2: the market, there's an enormous amount of demand and that's

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Speaker 2: what sort of is also driving up prices as well.

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Speaker 2: So those that can afford to pay, are you know,

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Speaker 2: the prices are being pushed up by a really competitive market.

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Speaker 1: Stamp duty relief is that adding to the problem. I

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Speaker 1: mean it's great for first time buyers who've got a

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Speaker 1: deposits great together, But I keep hearing that it does

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Speaker 1: add to higher prices.

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Speaker 2: Well, yes, and look I know that that it certainly

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Speaker 2: adds to. When you buy a house, there's all the

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Speaker 2: other costs that you've got to put in, So the

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Speaker 2: sale price is a soil price, but then there's everything

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Speaker 2: else that you've got to contribute to it, which is

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Speaker 2: you know, all the tax and the duties that go

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Speaker 2: with it as well, you can balancing fees, et cetera.

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Speaker 2: So I think it's more about, you know, how financially

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Speaker 2: prepared you are to enter the market. And look, certainly

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Speaker 2: the stamp duty relief helps that new homes and land sector,

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Speaker 2: which we know then stimulates supply because new houses will

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Speaker 2: be built and so that sort of trying to fix

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Speaker 2: a problem. But we know that what we need is

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Speaker 2: like an accelerated build to be able to meet what

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Speaker 2: demand looks like as well. So yeah, it's a it's

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Speaker 2: a it's a complex problem.

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Speaker 1: To say the very least. It's supply and demand, isn't it.

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Speaker 1: So if we ever get on top of building new

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Speaker 1: homes for all the people that need them, presumably the

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Speaker 1: price may drop, but that's years away, decade probably at

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Speaker 1: the very least.

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Speaker 2: Yeah, exactly that. But I think at the very least

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Speaker 2: what you might see is more of a balanced market

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Speaker 2: or not so much an accelerated increase. And yeah, certainly

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Speaker 2: from that perspective in terms of and look, it's particular

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Speaker 2: suburbs too, Matthew, because it's some suburbs that are really

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Speaker 2: tightly held. So if we take, for example, might be

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Speaker 2: the suburb of a Thorngate in South Australia, you know,

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Speaker 2: close to the city edge of a new prospect, very

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Speaker 2: rarely do houses become available and sort of like a

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Speaker 2: really tightly held suburb like that, and so then when

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Speaker 2: something does come available, it's an attractive proposition for those

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Speaker 2: that want to enter into the areas. So yeah, and

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Speaker 2: then look there's other there is where you Mount Barker

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Speaker 2: has a good supply of houses that are for stale,

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Speaker 2: but not ever in the numbers that they were stay

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Speaker 2: two or three years ago.

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Speaker 1: Yes, yes, so exactly there is that thorn Gate's interesting,

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Speaker 1: isn't it. I suppose they don't come on sale that

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Speaker 1: often because there's only about fifty houses in thorn Well,

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Speaker 1: that's right.

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Speaker 2: I mean what we're talking about there is really micro

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Speaker 2: environment as well a micro sit of housing markets too.

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Speaker 2: But you know, as we see sort of infrastructure builds happening,

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Speaker 2: you know we throw in the budget in terms of

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Speaker 2: what's happening with roads and the the North South Expressway

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Speaker 2: sort of from up to Darlington and beyond. Then it's

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Speaker 2: where sort of suburbs become more accessible for commuters, and

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Speaker 2: then infrastructure matches sort of the housing builds, then you know,

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Speaker 2: we start to get into an area where it's sort

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Speaker 2: of attractive living as well.

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Speaker 1: So yeah, Greg is called up with a question for you, Andrew.

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Speaker 1: If that's okay, good I Greg, good day, and sell.

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Speaker 3: Something simple for me. If you are in the over

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Speaker 3: sixties age group and you want to downside, can't they

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Speaker 3: just cancel the stamp duty? Therefore it will be a

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Speaker 3: little bit more affordable, open up a few more homes.

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Speaker 2: I think we listen, that's one thing that would be

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Speaker 2: and we know that if there was concessions in that market,

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Speaker 2: that would be terrific. I think from the perspective as well,

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Speaker 2: is that we know that. And I've had a conversation

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Speaker 2: about this is a week or so ago about downsizing

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Speaker 2: what we call it right sizing, so being able to

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Speaker 2: sell your home but then be able to sort of

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Speaker 2: not be then be able to afford what you move

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Speaker 2: into it. So remembering too, when you sell what you

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Speaker 2: might buy might not necessarily be a it will still

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Speaker 2: be a not a very cheaper option.

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Speaker 1: Yeah, all right, Greg, thank you a good question, And

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Speaker 1: a number of people have raised that over the last

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Speaker 1: little while, the last year or so particularly, that's right,

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Speaker 1: people do want to are their houses to down signs into.

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Speaker 1: Do we have enough of those? Probably not that either,

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Speaker 1: not really so.

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Speaker 2: I think when I looked we did. I had a

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Speaker 2: little look through. This was last week when we were

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Speaker 2: talking about this particular issue. I think it was about

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Speaker 2: five hundred and sixty houses at the moment for sal

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Speaker 2: that were two bedrooms and under. And look that's across

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Speaker 2: the state as well. And then I know sort of

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Speaker 2: retirement living and that becomes another level in the equation

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Speaker 2: for that as well. I think the other thing is

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Speaker 2: is that people say in properties that are maybe too

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Speaker 2: big for them, holding on tightly to that from that

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Speaker 2: sheep perspective of where what do they move into if

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Speaker 2: there's nothing available to move to?

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Speaker 1: Yeah, yeah, there is an argument to free up land,

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Speaker 1: of course, and government has been doing that. State government

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Speaker 1: here has been opening land parcels. You mentioned Mount Barker.

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Speaker 1: You look around there and the land that was farming

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Speaker 1: land now being used for housing. I suppose that has

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Speaker 1: always been the case forever. In a day where I live,

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Speaker 1: back in the eighteen hundreds, there were fruit orchards. It's

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Speaker 1: not a new thing necessarily, but we do look at

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Speaker 1: we do lose farmland as a result of this.

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Speaker 2: I know, massive, But I think the other thing too,

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Speaker 2: you know, from a housing issue, we look at sort

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Speaker 2: of subdivision and say, if you're sitting on a big block,

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Speaker 2: what does subdividing look like, what does planning restrictions, How

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Speaker 2: does that affect if there's not such tidal laws in

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Speaker 2: terms of what you can sort of subdivide. You know,

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Speaker 2: the governments looked at it in terms of grainy flats

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Speaker 2: as an option as well. So I think what we're

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Speaker 2: looking at is more about what does the structure of

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Speaker 2: a home looks like, who's in it, what does your

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Speaker 2: land look like for it, multi generational living, all of

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Speaker 2: those type of things. It's almost like, you know, the

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Speaker 2: reverse granny flat where perhaps your kids, your older kids

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Speaker 2: might move out, you know, to what would have been

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Speaker 2: what you might put your mother in law in. But yeah, yeah, yeah,

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Speaker 2: yeah interesting.

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Speaker 1: All right, Andrea, thank you for your time this morning.

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Speaker 1: Thanks Andrea Harding the Real Estate Institute of Say, let's

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Speaker 1: have a chat with Peter Strawn, who's President Sustainable Population Australia,

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Speaker 1: which a number of people on the text line are

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Speaker 1: already telling me that's where the problem lies.

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Speaker 4: Peter, good morning, Good morning, Mats.

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Speaker 1: Too many people housing unaffordable. Is that what you're going

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Speaker 1: to tell me?

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Speaker 4: Yeah, well, I mean the property industry always talks about, oh,

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Speaker 4: you know, there's a housing shortage or something, but they

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Speaker 4: never talk about a people logage. I mean in South

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Speaker 4: Australia and around Australia, we've never had more many as

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Speaker 4: many houses and the property industry might have come off

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Speaker 4: the boil a little bit, but you're still building one

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Speaker 4: hundred and seventy thousand new dwellings every year. The latest

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Speaker 4: numbers that have just come out of the Australian Bureau Statistics,

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Speaker 4: so that population growth was six hundred and fifty one thousand,

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Speaker 4: two hundred in the year to December, and of that

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Speaker 4: about five hundred and fifties was net overseas migration. So

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Speaker 4: that's where the big population growth is coming from. Birth's

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Speaker 4: minus deaths found about one hundred and four thousand on

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Speaker 4: an annual basis. Now, just in South Australia, your population

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Speaker 4: growth in the year has been one point six Compare

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Speaker 4: that to OECD average which is zero point seven percent.

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Speaker 4: So I think the problem is not supply. We've got

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Speaker 4: plenty of supply. And as your previous guest was saying,

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Speaker 4: the housing cycle takes three or four years to get underway.

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Speaker 4: By the time you actually get approvals for the land,

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Speaker 4: get planning, get all the infrastructure put in place, and

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Speaker 4: then build it, it's a three or four year cycle.

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Speaker 4: You can't just turn on a house and expect that

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Speaker 4: even if you were to start tomorrow, it's going to

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Speaker 4: take twelve road in a month to build that dwelling unit.

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Speaker 4: But what we can do very quickly is to reduce

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Speaker 4: this net overseas migration, which is largely driven by temporary migrants.

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Speaker 4: I mean, people think about migrants and think of someone

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Speaker 4: getting off an aeroplane with a suitcase and four kids.

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Speaker 4: But most of the migrants, about sort of eighty percent

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Speaker 4: of our immigrants into Australia are actually temporary migrants. But

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Speaker 4: many of them stay ten years and more on temporary

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Speaker 4: visas students for ten years. There must be slow learners.

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Speaker 4: And if they hear for ten years on a student visa, so.

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Speaker 1: Do they then stay in? Definitely do they stay permanently?

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Speaker 1: I imagine some would.

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Speaker 4: So what happened to the temporary visas? I mean, there

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Speaker 4: are multiple categories. There's about over two point five million

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Speaker 4: people living in Australia now, one in eleven of us

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Speaker 4: on a temporary visa. It's about seven hundred nearly eight

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Speaker 4: hundred thousand of those as students. Then you've got the

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Speaker 4: working holiday makers, you've got special skills, got all sorts

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Speaker 4: of categories who've come in. People often can come in

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Speaker 4: on a tourist visa and then claim asylum and then

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Speaker 4: it takes about three or four years to put them

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Speaker 4: through the process. In the meantime, they work and they're

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Speaker 4: on a temporary visa during that period. But what happens,

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Speaker 4: to answer your question, is that a lot of students

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Speaker 4: inverted commas come here purely to get permanent residents, and

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Speaker 4: they know that if they stay for two years. In fact,

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Speaker 4: the university is bending over backwards to help them, because

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Speaker 4: when I was at university, if you wanted to do

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Speaker 4: a master's you've added another year onto your bachelor's degree.

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Speaker 4: Now that they've coned the with their agents and so or,

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Speaker 4: they've told the unis, oh, we need a two year

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Speaker 4: master's degree, because they know at the end of two

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Speaker 4: years they can apply for permanent residence. So the students,

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Speaker 4: a lot of them do leave after their two or

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Speaker 4: three year course and they go back and enrich the

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Speaker 4: places where they've come from. But a lot of them

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Speaker 4: then seek permanent residence, so they then transfer from that

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Speaker 4: temporary category into permanent residence. Yeah, but at the end

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Speaker 4: of ten years it's still about ten or fifteen percent

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Speaker 4: of them on temporary visas of some sort.

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Speaker 1: All right, that's one of the problems. We've got to

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Speaker 1: leave it there. Peter, thank you for your time.

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Speaker 4: You're very welcome, Matthew.

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Speaker 1: Peter Strawn, their president Sustainable Population Australia. Australian capital cities

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Speaker 1: Adelaide included ranking amongst the world's least affordable places to

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Speaker 1: buy a home. The study that has come out Chapman

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Speaker 1: Uni Frontier Center for Public Policy Demographia International Housing Affordability

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Speaker 1: Report is what it's called