Powered by MOMENTUM MEDIA
subscribe to our newsletter

Unit developments ‘on verge of being mothballed’

Australia’s building industry is facing a crisis as overseas investors retreat following changes to foreign investment regulations.

Apartment projects are at risk of not commencing construction as developers are unable to satisfy the financier’s requirements for pre-commitment, in response to changes to foreign investment regulations and taxation.

Principal of Gunning Real Estate Malcolm Gunning said the effects of recent changes to foreign investment regulations and taxation will be seen towards the end of 2016 and into 2017.

“The message that has been picked up in China and seconded through our client base is that Australia doesn’t want Chinese investment,” Mr Gunning said.

“This could turn around and bite the state government in the backside because it will have a flow on effect on new off-plan sales if the Chinese think they are not welcome."

According to Mr Gunning, the construction industry is currently one of the biggest employers in NSW, and the state government can’t afford to have a downturn in this significant contributor to the economy.

Advertisement
Advertisement

PROMOTED CONTENT


“While the changes to stamp duty, land tax and increase in compliance powers granted to the ATO as well as rules to ensure foreign residents meet their capital gains tax liabilities aren’t unreasonable, the message is what is of concern,” he said.

“We should really be welcoming investment from China and the stability that it creates for our state and nation. Chinese investment should not be considered a threat and should be encouraged. We are not facing an invasion from China, but instead are seeing a group being singled out.”

[Related: Foreign investor surcharge ‘potentially disastrous’]

Unit developments ‘on verge of being mothballed’
mortgagebusiness

Latest News

The major bank will develop an integrated remediation plan on all activities related to risk governance and report to APRA each quarter as p...

The total value of new loan commitments for housing and the number of loans for the construction of new dwellings have reached record levels...

The recovery in Australian house prices continued in November, with CoreLogic stating that house values look set to surpass their pre-COVID ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: What’s being done to support home building?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.