ed60e427-7896-4319-90e6-b826c4065f77

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Three major housing-related measures were highlighted in Treasurer Frydenberg’s budget address on 6 October: an extension of the First Home Loan Deposit Scheme, additional low-cost financing for affordable housing through National Housing Finance and Investment Corporation and additional funding for the Indigenous Home Ownership Program.</p><p>Other measures detailed in the budget papers included a proposed capital gains exemption for granny flats for eligible persons from July next year, and a continuation of funding for state social housing services. </p><p>The papers also note that the expansion of the first home loan deposit scheme will be complemented by announced changes to ease credit regulations, which would boost credit availability.</p><h2><strong>Funnelling new demand into new property</strong></h2><p>First home owners have previously been a target of demand-side housing stimulus during economic downturns. Currently, Australia may be in a demographic “sweet spot” for first home buyer demand. </p><p>The relatively large millennial generation is now estimated to be aged around 26 to 37 years old, and according to ABS data, this puts millennials into the most common first home buyer age groups.  </p><p>Alongside the typical barriers to entry for hopeful first home buyers, this may be one of the reasons the first home loan deposit scheme has been so well-subscribed since its introduction in January this year.</p><p>The extension to the First Home Loan Deposit Scheme will see an additional 10,000 places available between 6 October and 30 June 2021, adding to the 20,000 places made available since the scheme started in January 2020.</p><p>However, these additional places are for construction or purchase of newly-built homes, and the price thresholds have also been increased for newly built homes, which would potentially further incentivise a pivot away from the established housing market. </p><p>The change in purchasing thresholds by region are summarised below.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/8382ddbd-1462-4d3b-b200-9af0295f2216.jpg" width="1032"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>It will be interesting to see if these conditions create as rapid an uptake as the places for established housing. </p><p>In 2008, the temporary boost to the first home owner grant provided added incentives for new builds, yet 85 per cent of its uptake was directed at established housing.</p><p>However, incentives limited to new home builds could still help soften the blow to dwelling construction through Covid-19. </p><p>Since the introduction of the HomeBuilder scheme, new home sales have been boosted across Western Australia, South Australia and Queensland. </p><p>CoreLogic data shows valuations ordered for the purpose of construction loans have seen a boost above pre-Covid levels since the introduction of the HomeBuilder scheme.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Valuations ordered for construction loans: 7-day rolling count</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/cb350b4c-3c30-4855-b501-4f53b22f1ad3.jpg" width="1002"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>In terms of the impact these schemes would have on the established market, the increased incentive for new home builds could reduce established home prices if demand is diverted from this sector. </p><p>However, the price of newly built homes may rise up to the threshold cut-off.</p><p>It is worth noting that despite the rhetoric employed around the extension of the scheme supporting the construction sector, the budget papers highlight that this will not be enough to offset a decline in new dwelling investment. </p><p>At August, dwelling approvals for units had fallen -18.4 per cent year-on-year. The budget papers forecast an 11 per cent decline in dwelling investment over 2020-21, before rising 7 per cent in 2021-22.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Indirect Impacts on Housing</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>With much of this year’s budget focused on the labour market, infrastructure construction and tax cuts, one could be forgiven for</p><p>thinking housing reform and stimulus took a back seat in this year’s budget.</p><p>However, some of the budget highlights will also have implications for housing. These include:</p><p><strong>The JobMaker hiring credit and JobTrainer fund</strong></p><p>These initiatives may help re-absorption of young people into the labour force following the initial pandemic-induced shock.</p><p>This reflects the disproportionate job loss of young people throughout Covid-19, where around 40 per cent of job losses between March and August were among those aged 24 and under.</p><p>Job loss among younger Australians may present less direct risk to the housing market due to their lower likelihood of holding mortgage debt. However, support for youth employment may create more buoyancy in the rental market, where inner-city markets in particular have seen rental income declines since the onset of Covid-19.</p><p><strong>A boost to infrastructure spending </strong></p><p>Depending on the nature of infrastructure projects, surrounding housing markets could see a rise or fall in demand. </p><p>Much of this year’s infrastructure allocation is in roadworks, which can have positive impacts on nearby housing by increasing accessibility to an area, but devalue properties with exposure to high traffic intensity, construction and noise pollution.</p><p><strong>Support for regional Australia </strong></p><p>The budget outlines $350 million in support for regional tourism to attract domestic visitation, and seeks to strengthen regional industry through concessional loans to farmers and access for exporters to global supply chains. </p><p>This may further generate interest in regional dwelling markets, beyond what has resulted from Covid-19 and the normalisation of remote work. </p><p>However, it worth noting this budget allocated little to fossil fuel alternatives, with climate</p><p>change presenting on ongoing challenge to the liveability of some regional markets.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Beyond the Budget</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Further to the budget, there have been many institutional interventions which have likely played a role in stabilising housing market conditions since Covid-19. These include, but are not limited to:</p><ul> <li><p>A comprehensive monetary easing package from the RBA, which saw a reduction of the cash rate to 0.25 per cent, bond yield targeting and the establishment of a term funding facility which has been extended to June next year;</p></li><li><p>Early access to $10,000 of superannuation in 2019/20 and 2020/21;</p></li><li><p>The Australian Prudential Regulation Authority (APRA) changed capital ratio expectations for the banking sector in March, facilitated home loan deferrals and later extended the availability of deferrals to March 2021;</p></li><li><p>The availability of JobKeeper and a boost to JobSeeker, which were made available from March, and extended to March 2021, albeit in a tapered form; and</p></li><li><p>A mix of state-based incentives for home buyers, such as the Building Bonus grant in WA, the Home Improvement Scheme in the NT, and temporary stamp duty discounts in NSW.</p></li></ul><p>These events remind us that housing does not operate in a vacuum. Many different factors are currently supporting housing demand. </p><p>This has created a turn in housing market sentiment, which is seeing prices rise across the small capital cities, and a softening of price declines across Sydney and Melbourne.</p><p>Looking forward, there may still be more tailwinds to come. </p><p>The RBA left the cash rate on hold in October ahead of the budget, but hinted in the final sentence of the statement on the decision that “additional monetary easing” was possible, and a recent address by Deputy Governor Guy Debelle carried the same messaging. </p><p>Lower interest rates, together with easier access to housing credit could create further housing market demand, given prices have historically increased against a lower cost of debt and greater availability of housing finance options.</p></div></div></div></div></div>

Three major housing-related measures were highlighted in Treasurer Frydenberg’s budget address on 6 October... 

0f54aea5-20ef-4cf8-867e-d870eeb5e913

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The federal government has announced a second-stage $66 billion stimulus package designed to help Australia’s economy avoid a Covid-19 related recession, while the nation’s pubs, clubs, casinos, and places of worship are set to shut down as of midday on Monday. </p><p>Dubbed the economic “safety-net” package, small and medium-sized businesses could receive tax-free cash payments of up to $100 thousand, along with support for households and assistance for casuals, sole-traders, and retirees. </p><p>Prime Minister Scott Morrison says the Commonwealth is also offering to guarantee unsecured loans of up to $250,000 for up to three years, while those in financial stress would be able to tap into their superannuation. </p><p>Sunday’s announcement brings the total stimulus package to $189 billion now injected into the economy designed “to keep Australians in work and businesses in business”, Morrison said during Sunday’s announcement. </p><p>The $189 billion includes the initial <a href="https://theurbandeveloper.com/articles/coronavirus-stimulus-package-development-construction-industry">$17.5 billion for government’s economic stimulus package </a>announced on 12 March—only ten days ago—the <a href="https://theurbandeveloper.com/articles/coronavirus-forces-unprecedented-rate-cut">$90 billion funding facility from the Reserve Bank</a> aimed to encourage lending to small and medium-sized businesses, and the $15 billion amount to deliver easier access to finance for small to medium-sized companies, announced by the treasurer on Thursday.</p><p>The total $189 billion figure is the equivalent of 9.7 per cent of GDP.</p><p>“There will be more packages, there will be more support,” Morrison said, flagging yet another fiscal injection, as talk on the nation’s economy shifts to talk of recession.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong><em>The stimulus package:</em></strong></p><ul> <li><p><strong><sup>Superannuation:</sup></strong><sup> Those in financial stress due to the coronavirus could access $20,000 of superannuation over two years.</sup></p></li><li><p><sup>Government to offer </sup><strong><sup>unsecured loans of up to $250,000</sup></strong><sup> for businesses with a turnover of less than $50 million, with no repayments required for the first six months. </sup></p><p></p></li><li><p><sup>Jobseeker allowance is now doubled.</sup></p></li><li><p><sup>A further $750 payment will be made to those on income support.</sup></p></li><li><p><strong><sup>Businesses and not-for-profits </sup></strong><sup>with a turnover of less than $50 million a year could receive tax free, cash payments starting at a minimum of $20 thousand and up to as much as $100 thousand. The Australian Tax Office will deliver the payment as a credit on activity statements from 28 April. </sup></p></li><li><p><strong><sup>Increased flexibility in insolvency and bankruptcy laws:</sup></strong><sup> Government is temporarily increasing the threshold that creditors can issue a statutory demand on a company, and will give up to six months to respond to the statutory demands they receive. </sup></p><p><sup>The package also includes temporary relief for directors from any personal liability for trading while insolvent. </sup></p><p><sup>This will see the </sup><em><sup>Corporations Act </sup></em><sup>2001 amended to provide temporary relief for companies to deal with unforeseen events due to COVID-19.</sup></p><p></p></li></ul></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>On Friday, the federal budget was postponed until October, with a new restriction of one person per four square metres announced for indoor venues.</p><p>The government was due to deliver the budget in May, but this is now pushed back to 6 October due to “<a href="https://theurbandeveloper.com/articles/coronavirus-forces-unprecedented-rate-cut">great uncertainty</a> that exists”, with all states and territories also agreeing to push back their budgets.</p><p>Morrison outlined that the pandemic is likely to remain a problem for at least six months.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>On Thursday, Canberra announced an investment of up to $15 billion towards smaller lenders aimed at supporting Australian consumers and small businesses.</p><p>Treasurer Josh Frydenberg revealed the <a href="https://theurbandeveloper.com/articles/coronavirus-forces-unprecedented-rate-cut">$15 billion package following the Reserve Bank of Australia’s emergency cash rate cut</a> to 0.25 per cent.</p><p>The $15 billion amount will be allocated to small banks and credit unions in effort to provide cheaper loans to small business and consumers during a “volatile time in global equity debt and credit markets”, with “small lenders providing competition for larger lenders,” Frydenberg said.</p><p>Speaking on the government and RBA measures put in place, Capital Economics said on Friday it expects output to decline by 2 per cent this year, and the unemployment rate to rise to 8 per cent.</p><p>With small businesses employing around five million Australians, the Australian Banking Association&#x27;s chief executive Anna Bligh announced on Friday that the big four banks will <a href="https://theurbandeveloper.com/articles/banks-defer-loans-coronavirus-small-businesses">defer small business loan repayments for six months </a>during the economic fall out from the coronavirus crisis.</p><p>Related: <a href="https://theurbandeveloper.com/articles/coronavirus-stimulus">Federal, State Governments Plan Further Coronavirus Stimulus</a></p></div></div></div></div></div>

Small and medium sized businesses could receive a tax-free payment of up to $100,000, as part of Canberra’s second-stage $66 billion stimulus package

dc07444c-a1ab-4c4e-a22d-d6e55d2cc01c

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Unemployment is expected to rise to its highest rate in almost thirty years, with new figures forecasting the rate to increase from 5.1 per cent to 10 per cent in the June quarter. </p><p>The latest treasury figures, released Monday night, said Australia’s unemployment rate could hit double digits for the first time since the “recession we had to have” of the early nineties. </p><p>Australia’s peak unemployment rate reached 11.2 per cent in 1992. It has hovered around 5 per cent and 6 per cent in recent years. And currently sits at 5.1 per cent.</p><p>While economic uncertainty, job insecurity and increasing restriction measures are likely to cause declines in real estate activity across the sector, the Reserve Bank of Australia said it was unclear how Covid-19 would impact property prices.  </p><h2><strong>Coronavirus impact on property market ‘unclear’</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Last week the Reserve Bank held its rate at 0.25 per cent. </p><p>In the central bank’s Financial Stability Review, it noted that Australia’s financial system enters this challenging period “in a strong starting position” with capital levels high, banks&#x27; liquidity position “improving considerably” in recent times, and noting that most households “now have substantial equity in their homes”.</p><p>“The economic downturn, uncertainty and social distancing are likely to result in very little turnover in the housing market,” the RBA said in the April update review. </p><p>“It remains unclear how this will affect residential property prices.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/50c9b3d5-e2a5-4781-8b9e-c858ab0461d9.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The coronavirus-induced downturn is expected to see Australia&#x27;s unemployment rate nearly double by mid-year.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>SQM’s managing director Louis Christopher expects the next month to be a telling time for the property market. </p><p>Last week SQM <a href="https://theurbandeveloper.com/articles/-pandemic-sees-property-listings-sqm">forecast</a> residential prices could drop by 30 per cent from recent highs in one of its bleaker scenarios, with the most overvalued cities — Sydney and Melbourne — hit the hardest.</p><p>“The next 30 days will likely tell the story. It is very hard to judge it,” Christopher said. </p><p>Preliminary auction clearance rates <a href="https://theurbandeveloper.com/articles/coronavirus-house-sales-auctions">fell below</a> 30 per cent over the Easter long weekend according to CoreLogic. Withdrawn auctions increased to comprise 57 per cent of all reported results. </p><p>While Australia’s house prices remained <a href="https://theurbandeveloper.com/articles/property-market-plunge-coronavirus-corelogic">positive</a> through March, recording a 0.7 per cent rise, CoreLogic says recent market trends have become <a href="https://theurbandeveloper.com/articles/property-market-coronavirus">less</a> relevant as we move into unprecedented uncertainty.</p><p>Treasurer Josh Frydenberg described the economic shock facing the global economy from Covid-19 as “far more significant than what was seen during the global financial crisis over a decade ago”.</p><p>“The exceptional measures taken to contain Covid-19 are having a major effect on economic activity and the global financial system,” he said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/2771d0e0-9401-4ce1-82d2-fdada8938f4e.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Frydenberg confirmed that the 10 per cent unemployment rate is expected when the figures for the June quarter are released. The unemployment rate currently sits at 5.1 per cent. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>In its update, Treasury forecast that the unemployment rate would increase to 15 per cent, “in the absence” of the Job Keeper package, the $1500 fortnightly payment to workers of covid-19 impacted businesses.</p><p>The $130 billion <a href="https://theurbandeveloper.com/articles/wage-subsidy-loan-deferrals">package</a> was passed in parliament last week. </p><p>More than 800,000 businesses have applied for the payment program, to date. </p></div></div></div></div></div>

Unemployment is expected to rise with new figures forecasting the rate to increase from 5.1 per cent to 10 per cent

Extending HomeBuilder, increasing CBD confidence and getting international students back are at the top of Dexus, Stockland and Charter Hall's wish-lists following the announcement of the federal budget by Josh Frydenberg.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Extending HomeBuilder, restoring confidence in the nation’s CBDs and getting international students back to our universities are at the top of property giants’ wish-lists following the announcement of the federal budget for 2020-21. </p><p>And while a range of initiatives to stimulate housing construction were outlined, key players from Dexus, Charter Hall and Stockland said that a few tweaks could further help the property industry.</p><p>With the economy forecast to fall by 3.75 per cent this calendar year and unemployment to peak at 8 per cent in the December quarter, Treasurer Josh Frydenberg said Australia is not immune to the pandemic and still has challenges to face.</p><p>“Once the recovery has taken hold and the unemployment rate is on a clear path back to pre-crisis levels, comfortably below 6 per cent, we will move to the second phase where there is a deliberate shift from providing temporary and targeted support to stabilising gross and net debt as a share of the economy,” Frydenberg said.</p><p>Population growth and business confidence were cited as two of the biggest drags on the economy and the construction industry by speakers at a Property Council of Australia post-budget briefing on Wednesday. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/fd091cd0-a6cb-402e-97fd-f0ba28781a09.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The Property Council of Australia hosted a federal budget insight conversation with Charter Hall&#x27;s David Harrison, Dexus&#x27; Deborah Coakley, PCA host Ken Morrison, ANZ&#x27;s Felicity Emmett and Stockland&#x27;s Mark Steinert. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2></h2><h2><strong>Confidence in the CBD will drive growth </strong></h2><p>Charter Hall director, chief executive David Harrison said the nation is at the start of a strong consumption boom driven by government stimulus and improvements in employment. </p><p>“I think corporate Australia needs to get on the front foot, and not what I think has happened in many places in adopting an ‘austerity’  strategy,” Harrison said.</p><p>“The first thing you need to do is get your people back to work, the economies in our CBDs are critical to this consumption-driven rebirth.</p><p>“We’ve had this massive hit to consumption because of lockdowns throughout the country and I think as the immediate health threat dissipates we are going to see a rebound.</p><p>“This economy needs a shot-in-the-arm on confidence, and if you can get business with more confidence they’re more likely to keep people employed, they’re more likely to employ people who are out of work now.”</p><h2><strong>Thriving universities make world-class cities </strong></h2><p>Dexus executive general manager, funds Deborah Coakley said the opening up of cities is also important for retail and small-medium enterprises. </p><p>“As we see business confidence rise we will certainly see a demand for space,” Coakley said.</p><p>“We have witnessed where our markets have opened up and where our states have been able to have intrastate travel, tourism those sorts of things that people are really wanting to have experiences and wanting to be back into the cut and thrust of spending.</p><p>“Hopefully that continues as more borders open up and we actually get to have more inbound tourism.”</p><p>Coakley said thriving universities are a vital component of world-class cities, and it is disappointing to see the influx of international students halted. </p><p>“Whether it’s to do with just the housing and accommodation side of things, they are consumers and they often bring international dollars with them, to quite a high extent,” Coakley said.</p><p>“So it’s really important to how we flourish in our cities, to the education sector and frankly from a diversity perspective.</p><p>Panellists agreed that if students were given appropriate quarantining and process issues resolved, students could be back in the country for the first semester of 2021.</p><h2><strong>HomeBuilder needs more time</strong></h2><p>Stockland chief executive Mark Steinert said given slowed population growth, more time would be required to get through building waitlists.</p><p>“With very low levels of population growth, it’s more likely that new construction growth will reduce rather than grow, particularly in apartments which have been affected by the reduction in foreign students and the reduction in skilled migration,” Steinert said.</p><p>“So to get that kind of growth there will probably need to be an extension of HomeBuilder—that’s been a really positive scheme.</p><p>“We’re still seeing high levels of inquiry from people looking for those purchases they can make that’ll qualify before 31 December.</p><p>“Unfortunately that’s created some capacity constraints around the availability of builders and that’s starting to feed into building costs—which is not what you want,” Steinert said.</p><p>“Even if you didn’t add more funding to the scheme, just give people more time to do the starts and spread it out—because taking those numbers, you really need to get through calendar year 21, and bridge into growth.”</p></div></div></div></div></div>

Extending HomeBuilder, increasing consumer confidence and getting international students back are at the top of property giants’ wish-lists...

934394db-e0fe-42ba-8102-f4adde81b2b3

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p>Covid-19 travel restrictions resulted in a 99 per cent drop in overseas arrivals to Australia in April, compared to April last year, as international travel grinds to a halt.  </p><p>The latest Australian Bureau of Statistics figures show that of the nearly 22,000 arrivals to Australia last month, more than two-thirds were Australian citizens returning from overseas, while just under 7000 arrivals were non-Australian citizens.</p><p>The large decrease reflects the travel restrictions progressively put in place from the beginning of February due to the pandemic outbreak.</p><p>Overseas visitor arrivals dropped by 60 per cent in March, in comparison to March 2019, with drops recorded in each state and territory.</p><p>Speaking in Parliament on Tuesday, treasurer Josh Frydenberg said domestic and international air travel is down by more than 97 per cent.</p><p>“With nearly 40,000 passengers moving through Brisbane airport on Easter Sunday last year, compared to just 31 passengers this year,” he said. </p><p>“The pandemic is not just an enormous health challenge but an economic one as well,” Frydenberg said on Tuesday.</p><p>Related: <a href="https://theurbandeveloper.com/articles/brisbane-property-market-2020-corelogic">Queensland Will Fare Better From Migration Downturn</a></p><p>New South Wales received the largest volume of international arrivals, at 114,500 visitors, ABS stats show this figure is down 64 per cent compared to March 2019. </p><p>Queensland recorded a 63 per cent decline in visitor numbers in March, followed by Victoria -58 per cent, South Australia -54 per cent, Western Australia -53 per cent, Tasmania -51 per cent, and the ACT -43 per cent.</p><p>The Northern Territory saw the largest fall with a 66 per cent decline.  </p><p>Focusing on short-term trips less than one year, the ABS statistics, took in all international travel, including tourism trips, arriving in and departing from Australia.</p><p>“In March 2020, there were 331,900 visitors who had arrived for a short-term trip compared to 836,300 12 months earlier,” ABS director of migration statistics Jenny Dobak said. </p><p>Dobak says the notable March decline in visitor arrivals to Australia was from all regions around the world. </p><p>“Even our largest source country New Zealand, recorded a 56 per cent drop.</p><p>“Of the top 10 source countries, China recorded the largest decrease of 78 per cent followed closely by Japan with a decrease of 75 per cent.”</p><p>Related: <a href="https://theurbandeveloper.com/articles/virgin-hq-coronavirus-investors">Virgin, Australia’s First Major Corporate Casualty Seeks Investors</a></p></div></div></div>

ABS figures released today on the drop in overseas visitors to Australia shows largest decline on record for April and March

Josh Frydenberg

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The Australian economy grew by just 0.4 per cent in the September quarter, a total yearly growth of 1.7 per cent.</p><p>The Australian Bureau of Statistics released the gross domestic product figures this week, revealing that during the September quarter consumer spending was not boosted by falling interest rates or $25 billion worth of tax cuts.</p><p>Treasurer Josh Frydenberg said the figures showed the Australian economy was “remarkably resilient” in the face of global headwinds such as trade tensions, and local conditions including drought, insisting the economy had reached a “gentle turning point”.</p><p>“The numbers today underline the economic resilience of the Australian economy and the need to stay the course and stick to the plan as outlined in this year’s Budget,” Frydenberg said.</p><p>Household expenditure slowed from 0.4 per cent to 0.1 per cent—the weakest since the final quarter of 2008. </p><p>The household savings rate rose from 2.7 per cent to 4.8 per cent—the highest since the first quarter of 2017.</p><p>Frydenberg conceded he would “like consumption to be higher” but put a positive spin on the savings rate, suggesting that households paying down debt would eventually be able to spend.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/2e022b9c-f3f8-47d6-84aa-2f2f0b6c1abc.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲  Ongoing population growth—which currently averages 250,000 permanent and temporary migrants, is a silver lining for the nation&#x27;s slowing economy.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Despite falling interest rates and the fact that somewhere around 60 per cent of the $7.2 billion in tax cuts have been paid out, consumer spending rose just 0.1 per cent, the worst result since the global financial crisis.</p><p>Unsurprisingly, household disposable income grew by 2.5 per cent, the fastest quarterly rise in a decade, driven by a decline in income tax payable and interest paid on dwellings.</p><p>The bureau said government final consumption expenditure rose 0.9 per cent in the quarter and remained strong throughout the year at 6.0 per cent.</p><p>Although the Morrison government has attempted to stimulate the economy by accelerating infrastructure spending, the Coalition government have persisted with a contractionary fiscal policy in the hope of banking a surplus.</p><p>“Public final demand is being supported by the continued rollout of the National Disability Insurance Scheme, more money being spent on aged care, as well as the Government’s ten year $100 billion infrastructure pipeline,” Frydenberg said.</p><p>Last month, the prime minister announced that the government would bring forward <a href="https://theurbandeveloper.com/articles/government-to-accelerate-38bn-infrastructure-spend">$3.8 billion of infrastructure spending</a> to ensure that infrastructure continues to support the economy and create jobs.</p><p>Victoria was the nation&#x27;s best performing state, adding 0.4 per cent in state final demand. NSW, the nation’s biggest state economy, added 0.3 per cent over the same period of time.</p><p>Victoria made up for the poor performance of Queensland, Western Australia and South Australia—all of which underperformed.</p><p>However, Victoria saw its softest household consumption in seven years.</p><p>State debt is also <a href="https://theurbandeveloper.com/articles/victorian-budget-funding-boost-for-transport-and-hits-for-foreign-investors">set to increase</a> by a further $29.7 billion over the next four years.</p><p>According to UNSW professor of economics Richard Holden the outlook for the next decade is bleak.</p><p>“I think it’s going to be a tough 2020 for the Australian economy. We’re going to see a continued slow wage growth, continued slow economic growth, and I think there will be more downward pressure on interest rates,” he said.</p></div></div></div></div></div>

The Australian economy grew by just 0.4 per cent in the September quarter, for total yearly growth of 1.7 per cent.

8ebb7590-1ed6-4a48-a471-34d6cbab915f

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>When you want to take back a multibillion-dollar giveaway to the country’s wealthiest, expect them to put up a fight.</strong></p><p>The Labor Party’s proposal to reduce the tax advantages of being a landlord by limiting negative gearing to new homes has become the new enemy of the landlord class, who are arming themselves for policy combat.</p><p>Luckily, the modern way we fight over resources requires no weapons, nor bloodshed, but it is nevertheless a strategic <a href="https://gameofmates.com/">Game of Homes</a>, with subplots, twists, surprises.</p><p>Negative gearers use losses made from investments such as renting out properties to cut their taxable incomes. If they make an eventual profit by selling out of the investment, the capital gains tax rules mean only half of it is taxed.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Labor is <a href="https://www.alp.org.au/negativegearing">promising to</a>:</p><p>• allow existing negative gearing arrangements to continue<br>• restrict new negative gearing to investment income, meaning investors could subtract investment losses from investment income but not wage income<br>• allow an exemption for investments in newly constructed housing, meaning those losses could still be deducted from wage income as they can at present<br>• cut the capital gains tax discount from 50 per cent to 25 per cent, meaning three-quarters of each capital gain would be taxed instead of one half as at present<br>• exempt existing investments from the change, meaning the capital gain on selling them would be only half taxed as at present whenever they were sold.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The changes would allow it to claw back more than A$30 billion over ten years, most of it from the higher earners in a position to take advantage of negative gearing.</p><p>Among the weapons being deployed against its plans are untruths. Here are some of them.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Untruth: it’ll cost us our AAA credit rating</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>No less an authority than the prime minister has claimed Labor’s negative gearing and capital gains tax proposal — that would recoup billions in taxes — would somehow make Australia’s public debt <a href="https://www.afr.com/news/politics/labors-negative-gearing-changes-will-cost-the-nation-its-aaa-rating-pm-claims-20181108-h17n47">less manageable</a>. </p><p>It would, for some reason, make rating agencies remove the letter A from rating documents that lenders pay little attention to.</p><p>Second, ratings by agencies who proved to be unable to judge risk during the global financial crisis don’t matter much to borrowers. Morrison would be as well served by claiming that he has three fully grown and trained dragons that would roast the grandchildren of people who vote Labor.</p><p>How effective it is depends on how much our media has become a clickbait farm rather than a news reporting service.</p><p>Hint for journalists: it is not news when a politician repeats untruths. It is newsworthy when one tells the truth. If you have to report untruths, simply write a headline along the lines of “politician lies again”. You will better inform the public.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Untruth: mums, dads, teachers and nurses will suffer</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The unspoken rule in Australia is that policy changes cannot hurt “Mums and Dads”. Add in teachers, nurses and police, and there’s an untouchable alliance.</p><p>Putting aside for one moment that the claim is misleading (the occupations most likely to negatively gear are <a href="https://www.afr.com/opinion/editorials/the-bursting-of-labors-negative-gearing-tax-bubble-20181211-h18zcj">surgeons and anaesthetists</a>), the inconvenient truth for those claiming that mums and dads will be hurt is that is that will still be able to negatively gear (<a href="https://www.alp.org.au/negativegearing">new properties</a>) under Labor’s policy.</p><p>What’s more shocking about the claim it that rests on the assumption that the government <a href="https://joshfrydenberg.com.au/latest-news/big-new-house-tax-will-smash-values/">cares about the financial well being of police officers</a>.</p><p>It is hard to believe that a government that presided over a <a href="https://www.smh.com.au/public-service/thousands-of-federal-cops-in-pay-limbo-20170404-gvdcos.html">two-year pay freeze</a> for the 6,500 staff of the Australian Federal Police, and who recently cut its budget, wants its officers to have more money.</p><p>To be part of the Game of Homes you apparently need not just to be a police officer, or a Mum or a Dad, but to be landlord as well.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Untruth: we won’t build more houses</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>In an unlikely claim, Master Builders Australia has <a href="https://www.masterbuilders.com.au/Newsroom/Labor-Fails-Its-Own-Test-On-Negative-Gearing">asserted</a> that a policy designed to channel funding into newly built housing won’t help build more houses.</p><p>It’s becomes easier to understand when you realise that the association is part of the Game of Homes. Actual builders have been leaving it, in some cases because of concern that it <a href="https://www.afr.com/news/policy/industrial-relations/master-builders-association-raises-ire-of-victorian-domestic-builders-20180710-h12h40">doesn’t represent their interests </a>and in others because of concern that it has ties to the Coalition.</p><p>Australia’s largest developer of new homes has been quoted in the <a href="https://www.afr.com/real-estate/mark-steinert-sees-boost-for-stockland-from-labor-negative-gearing-cuts-20180914-h15d1e"><em>Australian Financial Review </em></a>as saying:</p><h5><strong>the Labor Party’s plan to limit negative gearing tax breaks to new housing would put a rocket under the business of residential developers because demand from investors would surge.</strong></h5></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Untruth: housing will be cheaper, or more expensive</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Opponents of Labor’s proposal have claimed housing will be both cheaper and more expensive, as if each is a bad thing.</p><p>Sometimes, as with <a href="https://joshfrydenberg.com.au/latest-news/big-new-house-tax-will-smash-values/">Treasurer Josh Frydenberg</a>, they claim both in the same speech, in the same sentence:</p><h5><strong>Under the policy, everyone who owns a home will see it be worth less, and under that policy, everyone who rents a house will end up paying more.</strong></h5></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>At least he has pulled back somewhat from the claims made by then Prime Minister Malcolm Turnbull during the last election campaign.</p><p>Back then Labor’s plan was going to:</p><p>• <a href="http://sjm.ministers.treasury.gov.au/transcript/058-2016/">devalue every home, every property, in Australia<br></a>• <a href="https://www.malcolmturnbull.com.au/media/interview-with-neil-mitchell-3aw-melbourne">smash up home values</a><br>• <a href="https://www.malcolmturnbull.com.au/media/doorstop-with-treasurer-penshurst-sydney">take a big sledgehammer to property prices</a><br>• <a href="https://www.smh.com.au/politics/federal/federal-election-2016-malcolm-turnbull-calls-july-2-double-dissolution-poll-20160508-gop342.html">deliver massive shock to the housing market</a><br>• <a href="https://www.smh.com.au/politics/federal/federal-election-2016-malcolm-turnbull-calls-july-2-double-dissolution-poll-20160508-gop342.html">put at risk the investments of millions of Australians</a><br>• <a href="https://www.malcolmturnbull.com.au/media/speaking-with-karl-stefanovic-from-the-today-show">pull the rug out from under the property sector</a></p><p>It isn’t what the Treasury was telling the government. We now know, from documents released under the Freedom of Information Act, that it had told it:</p><h5>Overall, the price changes are likely to be small, though the composition of ownership may shift away from domestic investors.</h5></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Last year the government asked whether it could at least say the Treasury thought Labor’s plan <a href="https://static.treasury.gov.au/uploads/sites/1/2019/03/FOI-2397-Document-set-final-redacted.pdf">would reduce house prices</a>.</p><p>Treasury replied that it <a href="https://static.treasury.gov.au/uploads/sites/1/2019/03/FOI-2397-Document-set-final-redacted.pdf">could not</a>, in strikingly blunt terms:</p><h5><strong>We did not say that the proposed policies ‘will’  reduce house prices. We said that they ‘could’ put downward pressure on house prices in the short-term depending on what else was going on in the market at the time, but in the long-term they were unlikely to have much impact.</strong></h5></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>There is unlikely to be much impact on rents either. When Labor cut back negative gearing in the mid-1980s in the same way as it plans to now rents rose sharply in Perth and rose somewhat in Sydney. </p><p>They fell in Adelaide and Brisbane and remained steady in real terms in Melbourne. The Grattan Institute sums up the likely impact this time by saying rents “<a href="https://grattan.edu.au/wp-content/uploads/2016/04/872-Hot-Property.pdf">won’t change much</a>”.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Untruth: the government wants Labor to win the election</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Treasurer Frydenberg has <a href="https://joshfrydenberg.com.au/latest-news/big-new-house-tax-will-smash-values/">implored Labor to</a>:</p><h5><strong>listen to the critics of its policy, cut its losses and abandon the changes to negative gearing and capital gains tax.</strong></h5></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The lie here is that Frydenberg is trying to help Labor out, that he would want it to cut its “losses”. In political battles, parties generally celebrate the other side’s losses rather than steer them away from them.</p><p>As a rule, the more vested interests organise their strategic alliances and myth-making battle plans to stop your policy, the better it is. </p><p>We saw it the mining super-profit tax, we saw it with gold tax (yes, until 1991 the profits made from mining gold <a href="https://www.smh.com.au/business/no-mining-tax-will-not-kill-industry-20100427-tq0i.html">used not to be taxed</a>) we saw it with fringe benefits tax, we saw it with capital gains tax itself.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Stay tuned</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>I can’t predict what will happen next season on Australia’s Game of Homes, but there’s a chance some of the characters in this story will dramatically meet their demise, perhaps at the election.</p><p>Winter is coming.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Authors</strong></p><p>Cameron Murray, Lecturer in Economics, The University of Queensland.</p><p>This article is republished from The Conversation under a Creative Commons license. <a href="https://theconversation.com/the-game-of-homes-how-the-vested-interests-lie-about-negative-gearing-112222">Read the original article</a>.</p></div></div></div></div></div>

When you want to take back a multibillion-dollar giveaway to the country’s wealthiest, expect them to put up a fight.    

8cab664f-6470-4e1f-856b-b7035a63f6d2

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>The implementation of new recommendations will not drastically change broking commissions, for the time being.</strong></p><p>The Morrison government has backflipped on mortgage broker pay, just weeks after agreeing to the <a href="https://theurbandeveloper.com/articles/banking-industry-culture-driven-by-profit-and-greed-banking-royal-commission">banking royal commission’s recommendation</a> to prohibit trail commissions for new loans from mid-2020. </p><p>Treasurer Josh Frydenberg announced the policy change on Tuesday, promising a review in three years’ time.  </p><p>Upfront commissions to mortgage brokers made by banks will be part of the review as well — a 180-degree turn from ASIC’s review of mortgage broking remuneration in 2017. </p><p>The mortgage broker industry ramped up lobbying efforts prior to the back down, with mortgage broker industry groups launching advertising and offline campaigns — claiming up to 70 per cent of its members could lose their livelihoods if commissions were abolished. </p><p>Related: <a href="https://theurbandeveloper.com/articles/rate-cuts-likely-as-business-confidence-takes-a-hit">Rate Cuts Likely as Business Confidence Takes a Hit</a></p><h2><strong>Brokers play a ‘critical role’ </strong></h2><p>In a statement announcing the decision, Treasurer Frydenberg said mortgage brokers acting in the best interest of the consumer are good for the economy. </p><p>The government says it wants to see an increase in the number of mortgage brokers, up from the 16,000 currently working across the country, which combined employ more than 27,000 people. </p><p>Almost 60 per cent of residential mortgages are settled by brokers. </p><p>The treasurer said that brokers play a “critical role” in the mortgage market.</p><p>“We’re concerned about the impact on competition in the mortgage lending market,” Frydenberg told reporters after the announcement.</p><p>“Small lenders and mortgage brokers are an absolutely critical part of competition in that market.” </p><h2><strong>What has the government done so far?</strong></h2><p>In an effort to show a quick response to what many see as being linked to the potential housing crisis and a spiralling market, the government has extended the remit of the Australian Financial Complaints Authority and introduced several new measures to address conflicts of interest in the industry.</p><p>“We have passed legislation through the Senate to extend civil penalties to superannuation fund trustees and directors for breaches of their best interests duty and ban superannuation funds from inducing employers,” Frydenberg said in a statement.</p><p>“We have released exposure draft legislation to ban grandfathering of conflicted remuneration, released a consultation paper on removing the insurance claims handling exemption, and commenced a capability review of the Australian Prudential Regulation Authority and an immediate review of financial counselling services.</p><p>“We have also initiated work towards establishing a national farm debt mediation scheme.”</p><p>The government will introduce several new measures including bans on campaign and volume-based commissions and a two-year limit on claw-back; a requirement that the value of upfront commission be linked to the amount drawn-down by borrowers and an overarching legal obligation on mortgage brokers to act in the “best interests” of consumers. </p><p>The three-year review will be carried out by the Council of Financial Regulators and the Australian Competition Consumer Commission. </p></div></div></div></div></div>

The implementation of new recommendations will not drastically change broking commissions, for the time being. The Morrison government has backflipp

a298ea4e-cc4a-454d-bcfb-5fbd372249c2

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Moody’s says Australia’s economic strength will continue to underpin the AAA rating, notwithstanding the deep economic shock caused by the coronavirus crisis.</p><p>Australia is one of only 10 countries to retain the triple-A status, which impacts on the cost of borrowing by state governments and banks, from three leading credit rating agencies.</p><p>Moody’s stable outlook reflects its forecast that downside risks to the credit profile are contained by the “underlying resilience of the economy” and Australia&#x27;s “effective policy-making institutions”.</p><p>Treasurer Josh Frydenberg said that the rating was reflective of the federal government’s economic response to the pandemic, with $260 billion—or 13.3 per cent of GDP—injecting the economy in response to Covid-19. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/2bd6c01b-22f0-4dda-841d-39b0027d96b7.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Frydenberg said Australia&#x27;s Aaa rating was &quot;an expression of confidence&quot; in the economy.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The latest assessment from Moody&#x27;s means all three major ratings agencies, including Standard &amp; Poor’s and Fitch Ratings, puts Australia as one of only 10 countries to have a triple-A rating.</p><p>But the health-turn-economic crisis will take its toll, Moody&#x27;s expects GDP to fall by around five per cent in 2020.</p><p>“While large, the fall in GDP is smaller than in other advanced economies in general, consistent with signs that more normal work and spending behaviours are gradually returning as the epidemic recedes in the country.</p><p>“In Moody&#x27;s assessment, the resilience of the Australian economy supports a return to positive growth next year, without any significant long-lasting impact on growth potential once the crisis passes.”</p><p>Australia entered the coronavirus pandemic with a relatively moderate debt burden, which Moody&#x27;s says offered the scope to implement <a href="https://theurbandeveloper.com/articles/home-builder-residential-housing-stimulus-package">major</a> fiscal policy support. </p><p>Moody&#x27;s still forecasts Australia&#x27;s general government debt burden to rise to above 50 per cent of GDP in the fiscal year ending June 2021. This is up from 41.8 per cent in fiscal 2019. Moody&#x27;s expects further modest increases in the following years.</p><p>“While such a debt burden would be Australia&#x27;s highest in several decades, it would also remain consistent with other Aaa-rated sovereigns, most of which are facing a similar sudden debt shock,” Moody&#x27;s says.</p><p>“Compared to other advanced economies, the initial jump in the debt burden is likely to be less large for Australia due to a somewhat less acute fall in growth.”</p><p>Earlier this month, Frydenberg <a href="https://theurbandeveloper.com/articles/australia-enters-recession">conceded</a> the nation would enter its first recession, breaking a 29-year run. </p><p>Australia&#x27;s economy contracted 0.3 per cent in the March quarter and is likely to contract around 8 per cent in the June quarter. </p><p>The World Bank estimates that 90 per cent of global nations are expected to experience a recession over the first half of 2020. </p><p>CommSec chief economist Craig James said Australia is ending the 2019 financial year with a cash rate of 0.25 per cent, unemployment rate at 7.1 per cent and underlying inflation rate at 1.75 per cent.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div></div></div>

Australia’s economic strength will continue to underpin the Aaa rating, in a vote of confidence for the economy, Moody's says.

dc817d3c-753f-444d-8f16-8308fb48e5bb

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Australia has entered its first recession in almost three decades, following the bushfires and the onset of the coronavirus crisis shutdown taking a toll on the nation&#x27;s economy.</p><p>Treasurer Josh Frydenberg said Australia’s economy shrunk by 0.3 per cent in the March quarter, with the ABS noting that the figures only captured the beginning of the health crisis.</p><p>The June quarter is forecast to be much worse, as Treasury expects June to show the economy experiencing the full impact of the Covid related restrictions. </p><p>In economic terms, a recession is two consecutive negative quarters in which a nation’s GDP falls. </p><p>“In response to this 1 in 100 year global event, we put in place a series of health measures that have hit the economy hard,” Frydenberg said on Wednesday. </p><p>Over the past 12 months Frydenberg said the economy grew 1.4 per cent, the figures show it reflects the weakest performance since the 2009 global financial crisis.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/48406e2c-4acf-4b91-bb31-df0a7aaa415d.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ ABS figures show GDP dropped by 0.3 per cent in the quarter, but the impact of Covid-19 will be more clearly seen in the next quarter figures. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><br><strong>Building approvals fall in April</strong></h2><p>The residential construction sector faces a big headwind from a significant drop in net overseas migration, with a government <a href="https://theurbandeveloper.com/articles/residential-stimulus-package-to-weather-perfect-storm">stimulus</a> package now announced.</p><p>The latest ABS figures show dwelling approvals fared better than expected in April, although building approvals data is not expected to reflect the Covid-19 impact until August.</p><p>HIA chief economist Tim Reardon says the building approvals data released on Wednesday relates to projects lodged with local councils well before the impact of the pandemic. </p><p>Total dwellings approved dropped 1.8 per cent in the month of April, driven by an 8.9 per cent drop in approvals for private attached dwellings such as apartments, townhouses and semi-attached homes. </p><p>House approvals increased 2.7 per cent in April.</p><p>“All states recorded a monthly increase in approvals with the exception of New South Wales which declined by 29.9 per cent during April driven by a fall in multi-unit approvals,” Reardon said.</p></div></div></div></div></div>

  Australia has entered its first recession in three decades

TREASURER JOSH FRYDENBERG