1 00:00:00,120 --> 00:00:02,240 Speaker 1: Now, if you were listening to the show, yesterday, we 2 00:00:02,279 --> 00:00:04,840 Speaker 1: spoke to the Federal Member for Solomon, Luke Gosling about 3 00:00:04,840 --> 00:00:07,760 Speaker 1: the cap for first time buyers wanting to access the 4 00:00:07,800 --> 00:00:12,480 Speaker 1: newly expanded federal government first home Buyers game. Now, concerns 5 00:00:12,480 --> 00:00:16,560 Speaker 1: were raised about that six hundred thousand dollars not cutting 6 00:00:16,560 --> 00:00:18,639 Speaker 1: the mustard. Last week we spoke to a number of 7 00:00:18,680 --> 00:00:22,120 Speaker 1: different industry groups. We've also had those wanting to enter 8 00:00:22,200 --> 00:00:24,560 Speaker 1: the first home buyer market saying to us it is 9 00:00:24,760 --> 00:00:27,800 Speaker 1: just not enough. Now. Ruth Palmer from the Property Council 10 00:00:27,840 --> 00:00:30,880 Speaker 1: of the Northern Territory, the executive director, joins me on 11 00:00:30,960 --> 00:00:32,120 Speaker 1: the line. Good morning to you. 12 00:00:32,240 --> 00:00:34,239 Speaker 2: Ruth, Oh, good morning Katie. 13 00:00:34,320 --> 00:00:37,320 Speaker 1: Now, Ruth, Mister Gosling claimed yesterday that the CAP's in 14 00:00:37,360 --> 00:00:41,280 Speaker 1: line with the median house price and there's plenty on 15 00:00:41,640 --> 00:00:44,080 Speaker 1: the mark. At is that in line though with the 16 00:00:44,120 --> 00:00:47,120 Speaker 1: Property Council's latest stats and most recent report. 17 00:00:48,120 --> 00:00:51,320 Speaker 2: No, absolutely not so. Right now, we can see that 18 00:00:51,400 --> 00:00:54,640 Speaker 2: the meeting house prices have hit six hundred thousand, and 19 00:00:54,640 --> 00:00:57,800 Speaker 2: that was recorded from our June data. So we track 20 00:00:57,880 --> 00:01:01,280 Speaker 2: this every quarter and seeing since we've been tracking this 21 00:01:01,440 --> 00:01:06,399 Speaker 2: data since last year, we've seen about a ten percent jump, 22 00:01:06,400 --> 00:01:08,440 Speaker 2: So it went from five hundred and forty six thousand 23 00:01:08,480 --> 00:01:11,560 Speaker 2: in December five hundred and sixty two thousand in March, 24 00:01:11,640 --> 00:01:14,119 Speaker 2: and now we've hit that six hundred thousand. So it's 25 00:01:14,120 --> 00:01:16,360 Speaker 2: only I can predict it's only going to get higher 26 00:01:16,480 --> 00:01:19,520 Speaker 2: when we do our next stats, which will come out 27 00:01:19,560 --> 00:01:21,720 Speaker 2: at the end of the year, which benchmarks that sort 28 00:01:21,720 --> 00:01:22,760 Speaker 2: of September numbers. 29 00:01:23,360 --> 00:01:25,959 Speaker 1: So, I mean, your report also found that housing supply 30 00:01:26,040 --> 00:01:28,160 Speaker 1: is one of the biggest hand brakes. Can you sort 31 00:01:28,160 --> 00:01:29,800 Speaker 1: of break that down for us? 32 00:01:30,560 --> 00:01:34,360 Speaker 2: Yeah, so across the country we are lagging behind lights 33 00:01:34,520 --> 00:01:38,320 Speaker 2: like jurisdictions. So if you look at Townsville, Royal Campden, Canned, 34 00:01:38,600 --> 00:01:40,959 Speaker 2: the territory is sitting last. So we really need to 35 00:01:40,959 --> 00:01:43,840 Speaker 2: get that housing supply up. And it also means that 36 00:01:43,880 --> 00:01:47,120 Speaker 2: we have a very limited supply of people wanting to 37 00:01:47,160 --> 00:01:48,800 Speaker 2: be able to get into the market and to be 38 00:01:48,840 --> 00:01:51,120 Speaker 2: able to purchase a home. Now. 39 00:01:51,640 --> 00:01:54,360 Speaker 1: I know that yesterday we certainly had a lot of 40 00:01:54,400 --> 00:01:56,400 Speaker 1: people that were sort of pretty fired up. I think 41 00:01:56,400 --> 00:01:58,560 Speaker 1: it's safe to say after we spoke to Luke Gousling, 42 00:01:58,600 --> 00:02:01,520 Speaker 1: because you know, they're looking right now to try and 43 00:02:01,680 --> 00:02:04,280 Speaker 1: enter the first buyer or the you know, the first 44 00:02:04,280 --> 00:02:06,680 Speaker 1: star their first time, and they're trying to get into 45 00:02:06,720 --> 00:02:09,119 Speaker 1: their first time. You know, someone even sort of sent 46 00:02:09,280 --> 00:02:11,799 Speaker 1: through what is on the market at the moment. They're 47 00:02:11,840 --> 00:02:15,080 Speaker 1: saying that there is absolutely bugger all in terms of 48 00:02:15,200 --> 00:02:20,040 Speaker 1: standalone houses under six hundred thousand dollars. What do you 49 00:02:20,080 --> 00:02:20,520 Speaker 1: say to that? 50 00:02:20,720 --> 00:02:23,160 Speaker 2: Ruse, Yeah, that's right. And on real estate dot com 51 00:02:23,200 --> 00:02:25,600 Speaker 2: as well, there's around six, but I reckon, I think 52 00:02:25,639 --> 00:02:28,440 Speaker 2: there's a few that are actually up for auction, so 53 00:02:28,480 --> 00:02:30,880 Speaker 2: they can always go over that six hundred thousand. So 54 00:02:30,880 --> 00:02:34,680 Speaker 2: I think realistically there's about three, and I've spoken to brokers, 55 00:02:34,720 --> 00:02:38,000 Speaker 2: I've spoken to real estate agents, so effectively, there's three 56 00:02:38,080 --> 00:02:41,359 Speaker 2: standalone houses that can be purchased if you're taking out 57 00:02:41,360 --> 00:02:44,640 Speaker 2: that auction. But the problem with the federal government scheme 58 00:02:44,919 --> 00:02:47,480 Speaker 2: is the cat being at six hundred thousand is the 59 00:02:47,520 --> 00:02:51,200 Speaker 2: same level it was in twenty twenty two. So it 60 00:02:51,320 --> 00:02:55,320 Speaker 2: was put at six hundred thousand in July twenty twenty two, 61 00:02:55,360 --> 00:02:58,200 Speaker 2: and before that it was five hundred thousand in twenty 62 00:02:58,240 --> 00:03:02,760 Speaker 2: twenty one, so the scheme began. So when mister Gosling 63 00:03:02,919 --> 00:03:06,079 Speaker 2: is talking about those one thousand people who have purchased 64 00:03:06,120 --> 00:03:08,639 Speaker 2: homes or gone through the scheme. That's over a five 65 00:03:08,720 --> 00:03:12,359 Speaker 2: year period. That will be my understanding. So I think 66 00:03:12,400 --> 00:03:14,600 Speaker 2: we need to be a little bit more realistic about 67 00:03:14,600 --> 00:03:17,400 Speaker 2: those numbers and sort of what we're staying around who's 68 00:03:17,440 --> 00:03:21,040 Speaker 2: accessed or when those people have accessed it, because when 69 00:03:21,080 --> 00:03:23,320 Speaker 2: it started, the scheme was at three hundred and seventy 70 00:03:23,320 --> 00:03:25,560 Speaker 2: five thousand for the territory. 71 00:03:25,200 --> 00:03:27,600 Speaker 1: Ruth can I ask there was also sort of discussion 72 00:03:27,919 --> 00:03:32,520 Speaker 1: about you know, first homeowner's ability to service alone, and 73 00:03:32,800 --> 00:03:35,200 Speaker 1: you know those in the Northern Territory being able to 74 00:03:35,240 --> 00:03:38,480 Speaker 1: service alone. But then in other parts of Australia, Like 75 00:03:38,560 --> 00:03:42,160 Speaker 1: my understanding is of this first home buyer scheme and 76 00:03:42,200 --> 00:03:45,800 Speaker 1: the extension to it in every other state, those caps 77 00:03:45,840 --> 00:03:49,400 Speaker 1: went up. So I mean, why would Territorians not be 78 00:03:49,400 --> 00:03:52,119 Speaker 1: able to service the loan but those in other states can? 79 00:03:53,080 --> 00:03:56,040 Speaker 2: Yeah, exactly, And so it's not We've got to remember 80 00:03:56,120 --> 00:03:58,680 Speaker 2: it's not just for first home buyers, so or young 81 00:03:58,760 --> 00:04:01,320 Speaker 2: people wanted to enter the mind market. So you know, 82 00:04:01,400 --> 00:04:04,920 Speaker 2: many Territorians are buying or looking to buy, maybe after 83 00:04:04,960 --> 00:04:08,160 Speaker 2: a separation, moving back from into state, or they're essential 84 00:04:08,240 --> 00:04:11,040 Speaker 2: workers trying to buy where they live. But a lot 85 00:04:11,080 --> 00:04:13,400 Speaker 2: of people may not know. It's also for people who 86 00:04:13,400 --> 00:04:15,800 Speaker 2: have not owned lands or a property for the last 87 00:04:15,840 --> 00:04:20,560 Speaker 2: ten years, so people can access this scheme if they 88 00:04:20,600 --> 00:04:24,000 Speaker 2: haven't owned property in ten years. But there's also a 89 00:04:24,040 --> 00:04:28,280 Speaker 2: two percent deposit scheme to single parents, so a lower 90 00:04:28,520 --> 00:04:31,160 Speaker 2: price point there, but still sitting at that cap, so 91 00:04:31,279 --> 00:04:33,880 Speaker 2: six hundred thousand. But what we're seeing is people are 92 00:04:33,960 --> 00:04:36,280 Speaker 2: going to get shut out because the cap hasn't kept pace. 93 00:04:36,720 --> 00:04:39,800 Speaker 2: And if it is really about serviceability, and we talk 94 00:04:39,839 --> 00:04:43,240 Speaker 2: about the other jurisdictions all who have jumped ACT and 95 00:04:43,360 --> 00:04:46,680 Speaker 2: Queensland have lifted their caps to one million, which is 96 00:04:46,760 --> 00:04:49,600 Speaker 2: up from seven hundred and fifty thousand, and seven hundred 97 00:04:49,680 --> 00:04:52,359 Speaker 2: thousand in South Australia who were the same as US 98 00:04:52,400 --> 00:04:55,440 Speaker 2: as six hundred thousand have gone to nine hundred thousand. 99 00:04:55,839 --> 00:04:57,600 Speaker 2: So you know, like when you look at that, you've 100 00:04:57,600 --> 00:05:00,040 Speaker 2: got to go, well, why are we existing and we 101 00:05:00,080 --> 00:05:01,880 Speaker 2: haven't shifted since twenty twenty two. 102 00:05:02,360 --> 00:05:04,760 Speaker 1: What do you think would be a reasonable cap or 103 00:05:04,880 --> 00:05:07,000 Speaker 1: is you know, are you able to say. 104 00:05:07,800 --> 00:05:10,080 Speaker 2: Well to put it into perspective, Tazzi was at six 105 00:05:10,200 --> 00:05:12,960 Speaker 2: hundred thousand and they jumped to seven hundred thousand, so 106 00:05:13,000 --> 00:05:16,159 Speaker 2: they've seen one hundred thousand increase, which I believe is reasonable. 107 00:05:16,400 --> 00:05:19,200 Speaker 2: If you put into real estate dot com houses between 108 00:05:19,279 --> 00:05:22,800 Speaker 2: six hundred and seven hundred thousand, you will see a 109 00:05:22,920 --> 00:05:27,480 Speaker 2: significant larger number of properties under that seven hundred thousand caps. 110 00:05:27,800 --> 00:05:31,440 Speaker 2: It gives people more choice, It gives people more options 111 00:05:31,440 --> 00:05:34,160 Speaker 2: about where they want to live. Some people might not 112 00:05:34,279 --> 00:05:38,520 Speaker 2: want to be in you know, those smaller suburb properties. 113 00:05:38,880 --> 00:05:40,720 Speaker 2: People might want to go rural. People might want to 114 00:05:40,720 --> 00:05:42,720 Speaker 2: be in town. We have to be able to provide 115 00:05:42,720 --> 00:05:45,080 Speaker 2: people with a choice because if we want to encourage 116 00:05:45,120 --> 00:05:47,720 Speaker 2: people to want to come to the Northern Territory, but 117 00:05:47,800 --> 00:05:50,400 Speaker 2: also people in the territory to get off the rent 118 00:05:50,400 --> 00:05:53,400 Speaker 2: around about, then we need to be able to provide 119 00:05:53,400 --> 00:05:57,120 Speaker 2: them options, not just three properties that currently sit on 120 00:05:57,160 --> 00:05:57,640 Speaker 2: the market. 121 00:05:57,920 --> 00:06:01,479 Speaker 1: Hey, just on the rental market. What did the quarterly 122 00:06:01,560 --> 00:06:04,520 Speaker 1: report find in regards to the rental market? How those 123 00:06:04,720 --> 00:06:07,279 Speaker 1: you know, how the vacancy rates sitting? How things looking. 124 00:06:08,120 --> 00:06:11,320 Speaker 2: Yeah, so in March when we did our last number, well, 125 00:06:11,400 --> 00:06:14,040 Speaker 2: when we released our report in July, the March numbers 126 00:06:14,080 --> 00:06:16,880 Speaker 2: showed that our vacancy in Darwin was three point three 127 00:06:16,960 --> 00:06:20,719 Speaker 2: percent and in Alice Springs was two point nine. Darwin's 128 00:06:20,760 --> 00:06:23,520 Speaker 2: vacancy rates now are sitting at one point seven and 129 00:06:23,560 --> 00:06:26,160 Speaker 2: that's in the rental market, so there is only one 130 00:06:26,160 --> 00:06:29,320 Speaker 2: point seven percent, so we are tight, so there's very 131 00:06:29,360 --> 00:06:32,960 Speaker 2: limited rental stock. Alice Springs is at two point five percent, 132 00:06:33,000 --> 00:06:36,159 Speaker 2: so that's also seeing that drop down as well, So 133 00:06:36,160 --> 00:06:38,680 Speaker 2: there's very limited supply down in Alice Springs as well. 134 00:06:39,080 --> 00:06:42,600 Speaker 2: But so this is another issue that we have, is 135 00:06:42,680 --> 00:06:45,960 Speaker 2: there the supply and demand is just out of whack 136 00:06:46,120 --> 00:06:50,400 Speaker 2: and the rental market is so tight, rents are skyrocketing. 137 00:06:50,480 --> 00:06:53,440 Speaker 2: Because of that, there's limited housing on the market for 138 00:06:53,480 --> 00:06:56,680 Speaker 2: people to get in and buy, even through these incentive schemes. 139 00:06:57,160 --> 00:07:00,400 Speaker 1: I know they'd also been discussion from the Member for 140 00:07:00,440 --> 00:07:02,800 Speaker 1: Solomon yesterday. He was sort of saying, well, you know, 141 00:07:02,800 --> 00:07:05,840 Speaker 1: you've got the Northern Territory Treasurer calling on him to 142 00:07:06,279 --> 00:07:08,880 Speaker 1: you know, to review this price cap for the Northern 143 00:07:08,920 --> 00:07:11,560 Speaker 1: Territory for the first time Buyers scheme and the extended 144 00:07:11,880 --> 00:07:14,720 Speaker 1: first time Buyers scheme. But then you know what about 145 00:07:14,760 --> 00:07:19,280 Speaker 1: the Northern Territory government scheme here, you know, should they 146 00:07:19,320 --> 00:07:20,560 Speaker 1: lift their cap also? 147 00:07:21,760 --> 00:07:24,480 Speaker 2: Well, at the moment, the Northern Territory has the highest 148 00:07:25,480 --> 00:07:27,880 Speaker 2: scheme across the country when it comes to first home 149 00:07:27,920 --> 00:07:31,200 Speaker 2: buyers with that fifty thousand dollars first home owners grant, 150 00:07:31,520 --> 00:07:34,080 Speaker 2: So I mean, I think the government has put in 151 00:07:34,120 --> 00:07:38,200 Speaker 2: place schemes that have shown to be effective. We would 152 00:07:38,200 --> 00:07:40,560 Speaker 2: have preferred to have seen as well, the ten thousand 153 00:07:40,640 --> 00:07:44,880 Speaker 2: dollars existing home still on the market. That was one 154 00:07:44,880 --> 00:07:47,480 Speaker 2: thing that we felt was being taken up by a 155 00:07:47,520 --> 00:07:50,080 Speaker 2: lot of people being able to go into an existing 156 00:07:50,120 --> 00:07:53,120 Speaker 2: home because we know that the time to take it 157 00:07:53,160 --> 00:07:54,680 Speaker 2: takes to build a home, and you and I spoke 158 00:07:54,680 --> 00:07:57,640 Speaker 2: about this last week can skyrock it out to almost 159 00:07:57,640 --> 00:07:59,920 Speaker 2: a year. And you've got to remember high cost of 160 00:08:00,040 --> 00:08:03,320 Speaker 2: living at the moment, the pressures of that people have 161 00:08:03,440 --> 00:08:06,160 Speaker 2: to then rent while they build, or they've got to 162 00:08:06,160 --> 00:08:09,320 Speaker 2: be living somewhere. They might own another property, but likelihood 163 00:08:09,440 --> 00:08:12,080 Speaker 2: is people have to rent while that build is happening. 164 00:08:12,160 --> 00:08:14,640 Speaker 2: So we've got to remember not everybody also wants to 165 00:08:14,640 --> 00:08:16,840 Speaker 2: build a new home. Some people might want to go 166 00:08:16,880 --> 00:08:19,440 Speaker 2: into existing stocks. So we've just got to make sure 167 00:08:19,480 --> 00:08:24,160 Speaker 2: that we're you know, supporting everyone or supporting people in 168 00:08:24,200 --> 00:08:26,200 Speaker 2: the choices that they want to have when it comes 169 00:08:26,240 --> 00:08:29,000 Speaker 2: to housing, because people in an existing home might want 170 00:08:29,000 --> 00:08:31,720 Speaker 2: to right size into something something smaller if it was 171 00:08:31,760 --> 00:08:34,600 Speaker 2: mum and dad, kids have left four bedroom house, they 172 00:08:34,600 --> 00:08:37,040 Speaker 2: want to right size into something two bedroom they might 173 00:08:37,080 --> 00:08:39,400 Speaker 2: want to build, But then there is that option of 174 00:08:39,440 --> 00:08:41,800 Speaker 2: that four bedroom house to be taken up by a family, 175 00:08:42,080 --> 00:08:44,640 Speaker 2: and that's where that scheme we felt was really effective. 176 00:08:45,040 --> 00:08:47,680 Speaker 1: Well, Ruth Palmer, really good to speak with you this morning. 177 00:08:47,720 --> 00:08:49,960 Speaker 1: I appreciate you having a quick chat with us today. 178 00:08:50,679 --> 00:08:52,960 Speaker 2: Yeah, thanks a lot, Katie, thank you, thanks so much.