Immigration a key factor

Director Deanne Lamprey appears in The Burnie Advocate

From today’s Burnie Advocate www.theadvocate.com.au

Politicians slashing immigration would also cut house values, a prominent real estate figure has warned.

First National Real Estate Burnie managing director Deanne Lamprey is unimpressed by Prime Minister Julia Gillard’s talk of a “sustainable population” and Liberal leader Tony Abbott’s plans to cut immigration.

“The Prime Minister’s refusal to outline what she sees as a sustainable population is causing uncertainty for the property market, which is substantially underpinned by the highest levels of immigration since World War 2,” she said.

“She doesn’t want to debate the overall size of the population, nor birth rates, and she said `this isn’t about immigration’.

“However, her broad statement that she does not want a `Big Australia’ means if she supports personal choice on birth rates, there’s really only one place she can go; cut immigration.”

Ms Lamprey said any substantial cut would see businesses seeking labour suffer and a fall in demand for housing.

“That, in turn, would likely lead to a much slower market and, ultimately, falling home values.

` …one of the major advantages that helped our country avoid the 40% collapse in home values in the UK and USA during the (global financial crisis) was our solid immigration intake.”

Mr Abbott wants to cap immigration under 170,000 a year. It hit 300,000 two years ago.

Ms Lamprey said he was the “lesser of two evils”.

“At least he’s stating his intent.

“But what no-one is talking about is the fact that government is one of the major barriers to increasing supply of housing.”

“Ineffectual planning and approvals processes are the major barriers to increasing supply, so it is governments that will continue to drive the market into the future.”

Ms Lamprey was also scathing about what she described as “scaremongering real estate analysts” who predicted a housing bubble burst or affordability crisis amid claims Australia had the world’s most overpriced property.

“The reality is that we probably have one of the best buyers’ markets at the moment and houses at some of the most affordable levels in decades.”

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