1
00:00:00,120 --> 00:00:02,200
Speaker 1: Joining us on the line to talk us through this

2
00:00:02,759 --> 00:00:05,480
Speaker 1: a little bit more and how things are currently tracking.

3
00:00:05,519 --> 00:00:08,760
Speaker 1: It is the Master Builders into CEO Dave Malone. Good

4
00:00:08,760 --> 00:00:09,600
Speaker 1: morning to you, Dave.

5
00:00:10,840 --> 00:00:13,040
Speaker 2: Good wanting Katie, how are you not too bad?

6
00:00:13,200 --> 00:00:16,760
Speaker 1: Dave? You and I have spoken about these numbers before.

7
00:00:16,920 --> 00:00:19,480
Speaker 1: We've spoken about some of the concerns around the place

8
00:00:19,920 --> 00:00:23,880
Speaker 1: when it comes to Territorians entering the housing market. How

9
00:00:23,920 --> 00:00:26,560
Speaker 1: things are going? How things how are they going at

10
00:00:26,560 --> 00:00:29,120
Speaker 1: the moment when you talk about those wanting to enter

11
00:00:29,160 --> 00:00:33,760
Speaker 1: the housing market in terms of building a new home, Well.

12
00:00:33,520 --> 00:00:35,680
Speaker 2: That's a really good question, Katie. That from what we

13
00:00:35,720 --> 00:00:38,160
Speaker 2: can tell from the data that we've got, it's pretty

14
00:00:38,159 --> 00:00:40,640
Speaker 2: clear that the demand for housing is really starting to

15
00:00:40,720 --> 00:00:42,960
Speaker 2: drop off. Now there'll be a lot of reasons for that,

16
00:00:43,080 --> 00:00:45,599
Speaker 2: and we can we can talk about that. But you know,

17
00:00:45,960 --> 00:00:49,120
Speaker 2: back in March, at the end of the incentives that

18
00:00:49,159 --> 00:00:52,240
Speaker 2: we saw with home Builder and build Bonus Territory and

19
00:00:52,320 --> 00:00:55,400
Speaker 2: signed out for seventy five new homes. That contracts for

20
00:00:55,480 --> 00:00:57,720
Speaker 2: new homes in just one month. That was the end

21
00:00:57,720 --> 00:01:00,120
Speaker 2: of an incentive. But that's sort of the peace to

22
00:01:00,200 --> 00:01:03,560
Speaker 2: the market. And last month right across the territory in

23
00:01:03,600 --> 00:01:06,679
Speaker 2: every community had them all up and people just contracted

24
00:01:06,720 --> 00:01:10,480
Speaker 2: for eighteen homes. So there's a big gap between what

25
00:01:10,520 --> 00:01:13,360
Speaker 2: we saw as the peak and what we saw last

26
00:01:13,360 --> 00:01:14,160
Speaker 2: month in the market.

27
00:01:14,800 --> 00:01:16,880
Speaker 1: And Dave, does a lot of that come down to,

28
00:01:17,720 --> 00:01:22,200
Speaker 1: you know, those incentives really going? Like we know that

29
00:01:22,240 --> 00:01:25,480
Speaker 1: there were great federal incentives, there was great Northern Territory

30
00:01:25,480 --> 00:01:27,560
Speaker 1: incentives as well, and a lot of that's dried up,

31
00:01:27,600 --> 00:01:29,080
Speaker 1: hasn't it?

32
00:01:29,080 --> 00:01:31,800
Speaker 2: It has if you're a first home buyer. There was

33
00:01:31,840 --> 00:01:35,080
Speaker 2: a magic window that ran from you know, towards the

34
00:01:35,120 --> 00:01:38,520
Speaker 2: middle of last year through to March, when both federal

35
00:01:38,560 --> 00:01:41,200
Speaker 2: and state governments put money out encouraging people to get

36
00:01:41,200 --> 00:01:44,360
Speaker 2: into their new homes. They also had stamp duty concessions

37
00:01:44,440 --> 00:01:48,720
Speaker 2: as well, and a lot of people responded accordingly. But

38
00:01:48,800 --> 00:01:52,240
Speaker 2: what now those incentives are gone and essentially the price

39
00:01:52,280 --> 00:01:54,080
Speaker 2: the house has gone up because you've got to find

40
00:01:54,080 --> 00:01:58,760
Speaker 2: that extra money yourself, the extra deposit, and whenever prices

41
00:01:58,800 --> 00:02:01,960
Speaker 2: go up, demand goes down. Pretty simple economics, Dave, what

42
00:02:02,000 --> 00:02:02,160
Speaker 2: do you.

43
00:02:02,160 --> 00:02:03,920
Speaker 1: Reckon's going to happen? Here? Are we going to be

44
00:02:03,920 --> 00:02:06,440
Speaker 1: in a situation where we have people leaving the territory

45
00:02:06,480 --> 00:02:09,119
Speaker 1: because you know, it's maybe not as easy to get

46
00:02:09,120 --> 00:02:10,240
Speaker 1: into the housing market.

47
00:02:11,800 --> 00:02:13,880
Speaker 2: So that's my concern, and I think it's the concern

48
00:02:13,919 --> 00:02:16,799
Speaker 2: of the industry a bit as well. Not everybody is

49
00:02:16,840 --> 00:02:19,200
Speaker 2: saying that, of course, but I've had a few homeowners

50
00:02:19,200 --> 00:02:21,639
Speaker 2: who've contacted me and said, you know, you can get

51
00:02:21,680 --> 00:02:25,079
Speaker 2: incentives elsewhere in the country. We've got to weigh it up.

52
00:02:25,120 --> 00:02:26,800
Speaker 2: We've got to look at, you know, where we can

53
00:02:26,840 --> 00:02:29,800
Speaker 2: get into the housing market, because we all know once

54
00:02:29,840 --> 00:02:32,680
Speaker 2: you get in, things aren't anywhere near as challenging. So

55
00:02:33,240 --> 00:02:37,160
Speaker 2: people are looking at alternatives to the Northern Territory. We

56
00:02:37,560 --> 00:02:39,960
Speaker 2: should just never let any of these people go in

57
00:02:40,000 --> 00:02:42,480
Speaker 2: my view, that's the view of the industry as well.

58
00:02:42,680 --> 00:02:45,320
Speaker 2: And it's not just about putting work through the doors

59
00:02:45,320 --> 00:02:48,160
Speaker 2: of construction businesses. That's how you grow to the territory.

60
00:02:48,240 --> 00:02:49,800
Speaker 2: We just meet more people, don't we.

61
00:02:49,800 --> 00:02:51,920
Speaker 1: Well, this is kind of the interesting thing I reckon

62
00:02:51,919 --> 00:02:53,760
Speaker 1: at the moment. You know, as I mentioned before, we

63
00:02:53,800 --> 00:02:58,160
Speaker 1: spoke to Laws and Broad from Somerville Community Services last week. Now,

64
00:02:58,360 --> 00:03:02,679
Speaker 1: they obviously provide services to those that are struggling right now,

65
00:03:02,680 --> 00:03:04,639
Speaker 1: and there are a lot of Territorians that have gone

66
00:03:04,639 --> 00:03:06,920
Speaker 1: through a tough spot as a result of COVID for

67
00:03:07,080 --> 00:03:10,760
Speaker 1: various reasons. So, you know, talking about that rental stress

68
00:03:10,840 --> 00:03:15,120
Speaker 1: and affordable housing for you know, for some Territorians. But

69
00:03:15,280 --> 00:03:18,080
Speaker 1: then when you talk about other Territorians that are wanting

70
00:03:18,120 --> 00:03:21,079
Speaker 1: to enter the housing market or wanting to build their

71
00:03:21,080 --> 00:03:23,880
Speaker 1: own home, it does make a big difference when there

72
00:03:23,960 --> 00:03:27,240
Speaker 1: are incentives there. But like you've touched on, when you

73
00:03:27,440 --> 00:03:31,359
Speaker 1: talk about building the territory and growing the territory, we've

74
00:03:31,360 --> 00:03:33,919
Speaker 1: got to make sure people have places to live as

75
00:03:33,960 --> 00:03:35,640
Speaker 1: well if they move here for work.

76
00:03:36,880 --> 00:03:39,360
Speaker 2: Absolutely, and you know, it takes a long time to

77
00:03:39,400 --> 00:03:42,440
Speaker 2: go from the point where people believe they have enough

78
00:03:42,480 --> 00:03:44,760
Speaker 2: finances to go to the bank and start the process

79
00:03:44,760 --> 00:03:47,280
Speaker 2: of building a new home to actually putting the key

80
00:03:47,280 --> 00:03:50,000
Speaker 2: in the front door and moving in. That's a twelvemonth

81
00:03:50,080 --> 00:03:53,960
Speaker 2: process at least. And so when you have the market

82
00:03:53,960 --> 00:03:56,560
Speaker 2: dipping as it is now, not only does that have

83
00:03:56,600 --> 00:03:58,840
Speaker 2: an impact on us as an industry, but it has

84
00:03:58,840 --> 00:04:01,640
Speaker 2: an impact right across the community and it takes a

85
00:04:01,680 --> 00:04:04,600
Speaker 2: long time to call that back. What we always go

86
00:04:04,720 --> 00:04:07,960
Speaker 2: looking for is stability, and you know, right now the

87
00:04:08,080 --> 00:04:11,440
Speaker 2: balance in terms of our new homes in particular, has

88
00:04:11,520 --> 00:04:14,920
Speaker 2: changed quite a lot. I don't know whether your listeners know,

89
00:04:15,560 --> 00:04:18,040
Speaker 2: but you know, the average new home has fifty thousand

90
00:04:18,080 --> 00:04:21,200
Speaker 2: dollars worth of GST on it. First home buyers, when

91
00:04:21,240 --> 00:04:24,120
Speaker 2: they buy the block of land, they pay a contribution

92
00:04:24,200 --> 00:04:27,000
Speaker 2: back to the territory government for the land and then

93
00:04:27,040 --> 00:04:29,839
Speaker 2: they pay stamp duty as well, albeit with some concessions.

94
00:04:30,240 --> 00:04:33,159
Speaker 2: So housing is one of the most heavily taxed parts

95
00:04:33,839 --> 00:04:36,719
Speaker 2: of our society and you need to provide some incentives

96
00:04:37,080 --> 00:04:39,920
Speaker 2: for first home buyers. Police be adding it on that treadmill.

97
00:04:41,120 --> 00:04:43,880
Speaker 1: Are there any incentives at the moment for those first

98
00:04:43,880 --> 00:04:44,560
Speaker 1: time buyers?

99
00:04:45,640 --> 00:04:48,960
Speaker 2: Yes, the government still has some incentives in place, and

100
00:04:49,120 --> 00:04:52,400
Speaker 2: you know, like you can never complain when governments are trying.

101
00:04:52,640 --> 00:04:55,400
Speaker 2: But what happens for as far as we're concerned, is

102
00:04:55,440 --> 00:04:59,080
Speaker 2: when things change dramatically and the market dynamics change is

103
00:04:59,120 --> 00:05:02,599
Speaker 2: the result, because that falls straight away into this hole

104
00:05:02,640 --> 00:05:04,960
Speaker 2: that we're looking at, where you know, the number of

105
00:05:04,960 --> 00:05:08,479
Speaker 2: homes that have been built drops considerably. That affects our industry,

106
00:05:08,480 --> 00:05:11,960
Speaker 2: it affects those families. What we're looking for is certainty

107
00:05:12,000 --> 00:05:15,600
Speaker 2: and consistency. We argued when those intentees finished that there

108
00:05:15,600 --> 00:05:17,240
Speaker 2: should have been a transition arrangement.

109
00:05:18,080 --> 00:05:20,880
Speaker 1: Others thought differently, So what do you reckon needs to

110
00:05:20,920 --> 00:05:23,320
Speaker 1: happen here, Dave, I.

111
00:05:23,320 --> 00:05:26,240
Speaker 2: Reckon we need a medium to long term plan about

112
00:05:26,240 --> 00:05:29,040
Speaker 2: how we get a lot more territories into their own home.

113
00:05:29,600 --> 00:05:31,919
Speaker 2: Our level of home ownership in the territory is way

114
00:05:32,000 --> 00:05:35,320
Speaker 2: lower than anywhere else in Australia, and we keep talking

115
00:05:35,360 --> 00:05:39,440
Speaker 2: about population and wanting to keep families here and workforce

116
00:05:39,960 --> 00:05:41,240
Speaker 2: or it all starts with the home.

117
00:05:42,200 --> 00:05:44,960
Speaker 1: Well, I think it is a conversation that we need

118
00:05:45,000 --> 00:05:46,840
Speaker 1: to be having a little bit more of. I think,

119
00:05:47,400 --> 00:05:49,880
Speaker 1: you know, whether we're talking about as you and I

120
00:05:49,920 --> 00:05:52,280
Speaker 1: have just discussed now, whether we're talking about sort of

121
00:05:52,320 --> 00:05:55,760
Speaker 1: people getting into their first homes in terms of building

122
00:05:55,800 --> 00:05:58,320
Speaker 1: a new home, or whether we are talking about that

123
00:05:58,400 --> 00:06:01,640
Speaker 1: housing affordability. So I think that it's a really important

124
00:06:02,080 --> 00:06:04,640
Speaker 1: aspect when you talk about growing the Northern Territory.

125
00:06:06,120 --> 00:06:09,680
Speaker 2: I completely agree, And you know, I think sometimes you know,

126
00:06:10,040 --> 00:06:11,960
Speaker 2: you know, I've been around for a little while now,

127
00:06:12,480 --> 00:06:15,159
Speaker 2: I think people of my generation and even generations are

128
00:06:15,160 --> 00:06:17,920
Speaker 2: after me forget how hard it was to get into

129
00:06:17,960 --> 00:06:20,760
Speaker 2: that first time. Once you've done that, you're on a

130
00:06:20,839 --> 00:06:23,039
Speaker 2: very different treadmill in your life is taking a different

131
00:06:23,040 --> 00:06:26,760
Speaker 2: trajectory from that point onwards, but jumping in getting that

132
00:06:26,800 --> 00:06:30,760
Speaker 2: first place is genuinely difficult. It gets more difficult all

133
00:06:30,800 --> 00:06:33,960
Speaker 2: the time. You know, it's not just about can you

134
00:06:34,000 --> 00:06:36,800
Speaker 2: build it, but you know the changing banking regulations had

135
00:06:36,800 --> 00:06:40,120
Speaker 2: a big effect on people as well. I think we

136
00:06:40,240 --> 00:06:43,720
Speaker 2: just need to say to ourselves we really need these

137
00:06:43,760 --> 00:06:47,120
Speaker 2: families in particular to stay here in the territory, and

138
00:06:47,160 --> 00:06:49,000
Speaker 2: the best way of doing that is to make sure

139
00:06:49,040 --> 00:06:50,000
Speaker 2: they own their own heart.

140
00:06:50,520 --> 00:06:53,680
Speaker 1: Well, Dave Malone, the see of Master Builders here in

141
00:06:53,680 --> 00:06:55,880
Speaker 1: the Northern Territory, It's always good to catch up with you.

142
00:06:55,960 --> 00:06:57,920
Speaker 1: Thank you so much for having a chat with us today.

143
00:06:59,000 --> 00:07:00,520
Speaker 2: Have a great day, Katie Yuto