JUNE 3, 2024
Who: Charles Darwin University economics expert Dr Bhanu Bhatia.
Topics:
- House prices in regional and capital cities
- Housing supply
- Immigration and housing
Contact details: Call +61 8 8946 6721 or email media@cdu.edu.au to arrange an interview.
Quotes attributable to Dr Bhanu Bhatia:
"Strong demand in capital cities and regions continues despite interest rate rises. Along with higher construction costs, it means that the supply has not kept pace. While regional economic conditions are a contributing factor to demand growth, there has been a clear change in preferences since COVID with some opting for regional locations for affordable housing.
“While immigration has been highlighted in recent debates, the supply of housing receives less attention. Housing supply is deep seated problem and needs long term solutions. It is widespread and impacts a number of regions but is particularly acute in capital cities, especially Sydney and Melbourne.
“This then also has spillover effects in demand for housing in regional areas. Rising interest, high construction cost, red tape, increasing demand, aspirations for standalone housing structure have all been contributing factors.
“The issue has not been adequately addressed in at least the last decade. However, a blanket approach to this crisis is dangerous. Regional areas are plagued with skills shortages. Cutting migration is likely to result in lower economic activity in these regions. A more considered approach to migration, regional areas and housing supply is urgently needed.
“The issues are deep seated and will require long-term planning rather than knee-jerk reactions. Unless addressed they are likely to lead multi-generational effects.”
Contact details:
Raphaella Saroukos she/her
Research Communications Officer
Marketing, Media & Communications
Larrakia Country
T: +61 8 8946 6721
E: media@cdu.edu.au
W: cdu.edu.au