Speaker 1: So here we are with rents rising capital cities everywhere.
Speaker 1: What's the answer to this. There's so many places that
Speaker 1: are too expensive and then there's not enough. So where
Speaker 1: do we start.
Speaker 2: Well, the reality is full that we have a real
Speaker 2: shortage of properties to buy and also the properties to rent.
Speaker 2: So what's happening is we've just got this real undersupply
Speaker 2: and it's we're not having the supply come on fast enough.
Speaker 2: Even though we've got federal and state governments trying to
Speaker 2: put incentives in place, they're not building enough and not
Speaker 2: coming through to completion quick enough to.
Speaker 3: Meet the needs.
Speaker 2: So we've got this real undersupply and we've got to
Speaker 2: look at some ways how we can try and, at
Speaker 2: least from a rental perspective, try and keep the stock
Speaker 2: that we've got rental properties in the market and not
Speaker 2: lose those properties.
Speaker 3: So we need investors to.
Speaker 2: Actually be buying rental properties that can rent out to
Speaker 2: increase the number of rental properties on the market, but
Speaker 2: also encourage investors to stay in the market and not
Speaker 2: to sell, because what we're finding is when investors sell
Speaker 2: in this ready type market is that it is an
Speaker 2: owner occupier that's buying that previous investment property, and what
Speaker 2: that means is one less rental property in the pool
Speaker 2: of investments of rental properties.
Speaker 1: But what's the answer to the owner investor? Where are
Speaker 1: they going to live?
Speaker 3: Though? What we're saying was with the investment.
Speaker 2: What I would be recommending is that if we're encouraging
Speaker 2: the investment is around new builds, that helps with the construction.
Speaker 2: So I'm encouraging that investors be buying new properties around
Speaker 2: the country. That keeps the construction industry going, hopefully keeps
Speaker 2: out a little bit of competition in the established market.
Speaker 2: So it's a real catch to any two because we're
Speaker 2: short on properties for owner occupiers and we're also short
Speaker 2: of properties on the rental market. So it's a case
Speaker 2: of getting more supply out of the ground.
Speaker 3: What we need with that is we need we need
Speaker 3: more trades people.
Speaker 2: A lot of the problems that we just don't have
Speaker 2: enough traits normally. What would happen for is we may
Speaker 2: have two of the capital cities really really going strong
Speaker 2: on the market in the property market and the others
Speaker 2: a bit soft, and we may find that tradesmen may
Speaker 2: move from.
Speaker 3: Capital city to capital city for work.
Speaker 2: The challenge at the moment is we've got all capital
Speaker 2: cities and all regional areas really strong capital growth, price growth,
Speaker 2: and demand for building.
Speaker 1: Because it seems that we just seem to go round
Speaker 1: and round in circles with this, don't we when we
Speaker 1: never seem to have an answer for what to do?
Speaker 2: And you're right there, the problem does on a macro level,
Speaker 2: does not seem to be changing at all. There's a
Speaker 2: lot of there's a lot of words being spoken, but
Speaker 2: it's not improving the situation on the ground and hence
Speaker 2: why the lack of supplier is leading to prices going
Speaker 2: up for houses and for rental.
Speaker 3: So it's a big problem.
Speaker 2: The way that we're going to get the real way
Speaker 2: out of this is, unfortunately, is not a short term
Speaker 2: thing where it's a fire ten to twenty year plan
Speaker 2: that we've Actually we've got to increase the supply. A
Speaker 2: lot of this supply, most effective supply is going to
Speaker 2: be come froming from apartment buildings, because an apartment can
Speaker 2: reside fifty one hundred, maybe two hundred people.
Speaker 3: The challenge has been with still in our hangover from COVID.
Speaker 2: Is that is that it became very risky for developers
Speaker 2: to build when they're not really knowing their cost base
Speaker 2: because input prices were moving and prices are going up,
Speaker 2: they're very reluctant to commit to projects that take time
Speaker 2: apartments buildings from beginning to the end, maybe a three
Speaker 2: four five year commitment.
Speaker 3: So what they need to be knowing is that.
Speaker 2: They're they're pricing, their pricing is fixed, and if they
Speaker 2: start selling early with the pre sales, that they can
Speaker 2: actually make a profit.
Speaker 3: And that's been the problems.
Speaker 2: Developers have been very unsure whether they can build these
Speaker 2: very much needed apartments and affordable apartments and still
Speaker 3: Be able to make a profit and not make a loss.