Large homes see growth in Victoria… Forty postcodes at risk of default warns mortgage lender… Tax reform for housing in focus for builders…
Demand for larger homes has driven up prices in Victoria over the year to the end of June. The Real Estate Institute of Victoria’s figures show that three bedroom home prices were up 5.8 per cent and four bedroom homes added 4.9 per cent to their value. The location that saw the highest bedroom median was Gisborne where four-bedroom homes increased 8.8 per cent over the year to a median of $608,000 – the highest in regional Victoria.The latest REIV data only includes suburbs which had 50 sales or more over the year. When this criterion is excluded, Barwon Heads was the most expensive suburb in regional Victoria with a four-bedroom median price of $835,000 and a three-bedroom median price of $735,000, up more than 15 per cent over the year. Regional Victoria is also home to the state’s most affordable locations, especially for three-bedroom homes.
Morwell in eastern Victoria is the state’s most affordable town with the median price for a three-bedroom home just $153,000.
Forty postcodes at risk of default warns mortgage lender
The National Australia Bank says that it has identified 40 postcodes across the country which are more likely to see defaults on loans. Business and personal lending could cause potential problems in areas that rely heavily on one industry, have high unemployment or have over-inflated property prices. Rising interest rates and unemployment are the largest risks to the banking sector says NAB. The mortgage lender has not disclosed the postcodes it ranks as risky but it has said that bad debts should not cause a problem in the immediate future.
Tax reform for housing in focus for builders
The body which represents Australia’s home builders says that tax reform is needed with the aim of removing the burden from the housing market. The Housing Industry Association convenes its Better Living Summit today (Tuesday) and spokesman Greg Weller said: “Tax reform is the biggest economic issue on the national agenda. With an eye to the future, now is the time to consider the impact of the current unfair taxation burden placed on new housing. This reduces housing affordability and limits growth in the wider economy.”
This year’s summit is titled Taxing the Australian Dream: Can we get the tax off housing? It will explore the solutions to reverse the tax impost on new housing, which are fairer for home buyers, employers and the community, yet deliver resources for governments to provide the infrastructure and services necessary for prosperous communities.