Whether you are buying your first investment property in Adelaide, or are a long-time owner, you might be interested to know what could be in store for the property market. The Australian Treasury released the Intergenerational Report 2015 last week and it contains some very intriguing revelations for the country's future.
Released every five years, the report examines how Australia will cope with shifting demographics and a rapidly rising population. The results showed that not only will there be more people calling Australia home in 40 years time, but the face of the population will become a little older. In fact, the report predicts that the number of people aged 65 and over will more than double by 2055.
This report throws up some challenges for housing supply. The campaign to boost the number of new builds and support construction has reached full voice recently, especially in South Australia. The SA branch of the Property Council, and the Housing Industry Association, have already announced opposition to stamp duty, which it sees this a barrier to all kinds of growth, including construction of new homes. HIA Executive Director, Robert Harding, said new house building should recover, but policy makers need to take an active stance.
"New house building should slowly recover over the medium term, however we must start to see policy makers start making decisions that will restore confidence in South Australia's economy," he said.
"Stamp duties, excessive infrastructure charges as well as planning delays and uncertainties are major cost imposts on new housing and must be reduced as a matter of priority."
Removing these issues could ease some of the pressure and allow further growth in Adelaide real estate for the future. If you have any questions about what lies in store for Adelaide, tap into the Ray White team's wealth of local knowledge.