The second article interests me, while it is about QLD I suspect NSW may follow with falling building activity also.
The question being asked is; can the government give developers a break on charges and levies in that state?
For land around Sydney the charges are such a large burden that while the finished product is expensive the raw land is not compared to other places like Perths outer suburbs where ironically development acreage is stupidly dear for like for like finished property prices or even lower finished property prices.
I would love to know from Sydney developers are there any rumors in the field as to what the governments next move is going to be there if building activity started to fall? They have already removed part of the stamp duty for purchasers if they build, will they next reduce levies next in the hope the reduced levy will increase turnover and total tax take? Or will they just keep flogging a dead horse so to speak?
If this is the path they take while I would be bearish Sydney finished land / dwellings greenfield developers might be a good investment or better still the fringe land capable of development.
Building has been used to kick start economies before, it may be again. I cannot see this being a weapon at their disposal in Melbourne as they have already built so much through their state gov stimulous programs, especially in the regions, but for Sydney perhaps it is.
A 100million concession in one year would see lots of homes completed around Sydney and drive total building activity but hurt house prices longer term.
Good if you own one of the lots that is next cab off the rank for development.
