This article is from the Australian Property Journal archive
IF elected, a Dutton Coalition government will devote 30% of its $5 billion housing infrastructure spend to regional, rural and remote communities, as the major parties begin to sharpen their policies with the housing crisis poised to take centre stage at the upcoming federal election.
Amid a national housing crisis that has seen rents surge and vacancies hover around record lows, housing is expected to be centre stage in the 2025 battle.
Shadow Minister for Infrastructure, Transport and Regional Development, Bridget McKenzie revealed the key detail at this week’s HIA Regional Housing Forum.
Opposition Leader Peter Dutton unveiled the Coalition’s broader housing plan in October, which pledges $5 billion to key infrastructure such as water and sewerage that it says will unlock up to 500,000 homes over five years.
Funds would be distributed as grants or concessional loans to fast-track construction of housing projects, on a use-it-or-lose-it basis.
HIA’s chief executive industry and policy, Simon Croft, welcomed the commitment.
“Today’s announcement to allocate 30% of the proposed $5 billion dollars to the regions is a good step in addressing the critical housing shortages facing regional Australians,” Croft said.
“The number of Australians moving from cities to the regions continues to grow, and this trend is expected to increase in the coming years. Currently, 8.5 million Australians or one third of the population are now living in regional Australia.
“Unfortunately, the housing shortages being witnessed in capital cities are even worse across nearly every regional town in Australia.”
He said the three key factors, hampering the delivery of more housing in regional Australia is access to shovel-ready land, investment in necessary enabling infrastructure for new housing estates, and staff shortages in regional councils to process planning approvals.
“Practical measures such as those announced today to unlock housing supply and get projects shovel ready sooner are critical to ensuring the residential building industry can meet increased demand and support greater housing delivery across the country,” Croft said.
Domain’s chief of research of economics, Nicola Powell told Australian Property Journal this week said that Australia is “stuck between high interest rates and an undersupply of housing”.
“That undersupply of has been one of those key forces that has driven prices higher over 2024. And that rising price has happened during a significant period of financial uncertainty. The undersupply of housing hasn’t gone away, and it is going to still be here in 2025 and become a key battleground in the election.”
Labor’s housing policy has hinged on the National Housing Accord, which aims to deliver 1.2 million “well-located” homes over five years.
The Coalition has in recent weeks focused on high international student and migration levels as a cause of the housing shortage. Dutton has previously said up to 100,000 existing homes could be freed up over five years by cutting international student and migration numbers, as well as banning foreign investors and temporary residents from purchasing existing homes for two years.
As for interest rates, with core inflation holding high, labour markets holding tight, and rising geopolitical risk, hopes for a rate cut early in the new year have been pushed back further and further. Domain and many others are now expecting a cash rate reduction mid-year.
