How could reduced housing supply in Perth affect the City of Stirling?
Housing supply shortage may increase development pressure on City of Stirling The federal budget's tax changes, specifically related to negative gearing and capital gains tax, have discouraged investment in residential property, leading to landlords exiting the market and reducing housing supply in Perth. This supply shortage, which is particularly severe in capitals outside of Sydney and Melbourne, increases the demand for housing. As a local government area and development manager within Perth, City of Stirling is positioned to manage this heightened demand, likely leading to increased pressure on its planning and approval processes.
- Effect
- Mild negative
- How direct
- Brind's reasoning
- When
- Within weeks
- The story
- Gone quiet
How it reaches City of Stirling
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Tax changes in Perth are reportedly reducing housing supply and investor incentives. This has led to a tightening rental market, with rent increases reaching 141 per cent over seven years in some cases. Due to the tight supply, extended families and friends are increasingly grouping together to secure rental properties.
The full event1independent outlet -
The resulting severe supply shortage in Perth pushes renters to be more creative and increases the overall demand for housing stock. As a local government area and development manager within Perth, City of Stirling must manage this heightened demand through its planning framework.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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local government area in Perth, Western Australia
Everything about City of Stirling
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The facts so far
As reported. Each one links to where it comes from.
- Negative gearing and capital gains tax changes in May's federal budget discouraged investment in housing in Perth.abc.net.au
- The tax changes have led to landlords exiting the market, reducing housing supply.abc.net.au
- Capitals outside of Sydney and Melbourne experienced more severe supply shortages.abc.net.au
Why it matters
The housing market in Perth is currently facing significant strain due to policy changes, leading to a reduction in available residential property. For local government bodies like City of Stirling, this shortage translates into increased operational complexity and pressure to facilitate new housing development to meet the rising demand from renters and buyers.
This situation is part of a broader national trend where housing affordability is a major concern, with renters being particularly disadvantaged. While some first home buyers benefit from the exit of investors, the large portion of the market reliant on private rentals faces escalating prices and supply constraints.
What we don't know yet
- How will City of Stirling adjust its planning policies to cope with the increased demand for housing?
- Will the pressure on local development managers lead to changes in approval timelines or requirements?
What would change this answer
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Reporting
- abc.net.auOct 18
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.