When it comes to commercial real estate for sale on the Gold Coast, people are always on the lookout for affordable property, which is more often than not fostered through continued supply. And according to new release from the Housing Industry Association as well as ANZ and the Property Council of Australia, foreign investment is an important part of boosting this supply growth.
The results of this will interest anyone who has been looking to buy or lease commercial property in the Surfers Paradise area, or the wider Gold Coast.
The Housing Industry Association (HIA) recently argued that housing supply in Australia was one of the most important factors heading into the future. Commenting on the Federal Treasury's Intergenerational Report, HIA chief executive for industry policy and media Graham Wolfe noted that Australia's ageing population was to reach nearly 40million by the year 2050.
This meant that residential housing supply would have to significantly increase. This also opens up options in the commercial realm, as apartment blocks spring up and more retail and commercial spaces are required in these new residentially dense regions. The HIA specifically noted that manufacturing and retail would likely experience positive flow-on effects from a boost to housing supply – good news for those looking at industrial property for sale at Surfers Paradise.
But how can it be improved?
The Property Council and ANZ survey for the June quarter of this year indicated that large, steady levels of overseas investment into Australian property is bringing more supply to the market.
"Foreign investment provides the crucial early stage capital to get big new housing developments over the line and into construction, delivering the twin benefits of more jobs and more new homes," said Property Council chief executive Ken Morrison in the 24 April media release.
"Our research clearly establishes the critical link between foreign investment and new housing supply."
Mr Morrison argued against new fees on foreign investment, particularly the idea of a new fee that would emulate what stamp duty does for domestic purchasers of property. He added that keeping foreign investment in property flowing with stability would foster demand, which would in turn make real estate more affordable by driving up supply.
Clearly, allowing continued investment from overseas buyers and leasers is likely to have ongoing benefits for the leasing of commercial property on the Gold Coast by keeping the market healthy.
Another factor that could impact the supply of commercial property for sale on the Gold Coast is negative gearing laws. These allow investors to benefit from tax breaks, depending on whether or not rental income outweighs the cost of maintaining a rental property.
The HIA has argued vigorously that the removal of negative gearing would discourage investors, which has negative impacts for supply across Australia. Instead, Mr Wolfe stated in a 16 April press release that negative gearing should be left alone, while taxes for new home buyers like stamp duty should be targeted.
This echoes the previous HIA release on supply issues, but with specific reference to allowing negative gearing to keep growth going.
These are all important aspects of the housing market to keep an eye on as you implement plans for commercial and industrial leasing in Surfers Paradise. Buying or renting property here gets you real estate in a thriving economic and tourism hub, that can prove incredibly beneficial in your long-term financial planning.
To find out more about business and property opportunities, contact Ray White Surfers Paradise. Our teams will be able to set you up with an excellent piece of real estate.