Budget 2024: How Will It Impact Eastern Suburbs Real Estate?

Budget 2024 introduced a range of measures around housing and construction.

We explore how these are likely to impact the property market here in Sydney’s eastern suburbs.

Budget 2024 introduced a range of measures around housing and construction. We explore how these are likely to impact the property market here in Sydney’s eastern suburbs.

1. Homes for Australia

We’ve often written about the lack of available stock in Sydney’s eastern suburbs, and how this is impacting both sale values and rental prices. However, this really is part of a national problem – with low listing levels and vacancy rates now impacting virtually every market in the country.

The Commonwealth government recognises this too, and has allocated more money to address our national housing shortage.

It has allocated another $6.2 billion to its ‘Homes for Australia’ plan, which is part of its promise to build 1.2 million new homes. The cost of land may mean few of these homes are built in Sydney’s east, but we will watch with interest as they are badly needed.

2. Infrastructure and construction

The Budget allocates $1 billion to build roads, sewers, energy, water and community infrastructure for new housing. These are obviously essential when new housing divisions are built, but this spending probably won’t impact our area too much.

What’s more relevant from our point of view is that the government has used the Budget to pledge a boost to the number of construction sector workers, in an effort to overcome labour shortages. This includes 20,000 new fee-free TAFE training places to increase workers in construction and housing, as well as financial incentives for apprenticeships.

We’ve noted previously that a lack of available tradespeople has been one of the real factors holding back construction in our area. Getting hold of qualified trades is harder than ever, and its impact is being felt right across the market, from major developments through to knock-down rebuilds and home renovations.

Rising construction costs have also impacted our local property market, with people lately paying a premium for the finished product in preference to homes that require substantial work.

3. Affordable rents

The Budget includes a 10% increase to the Commonwealth Rent Assistance, adding to a 15% increase from the previous year. This measure, which will cost $1.9 billion, subsidises rent to up to almost $250 a fortnight (for a couple with three or more children paying rent of more than $616.70 a week).

To qualify for rental assistance, you generally need to either receive an income support payment or qualify for Tax Family Benefit A.

We’ve often written that it’s vital that people can live close to where they work, even when they’re not high-income earners—and many eastern suburbs renters are likely to qualify for the payment.

4. Student and social housing

The government used the Budget to announce that it will be requiring universities to increase the supply of student housing. It also says that the cap on international students will be tied to the amount of housing universities can provide.

Given that one of our city’s most important universities—UNSW Sydney—is located in our local area, this is likely to mean more student housing.

Additionally, the government has announced a further $1.9 billion in concessional loans to help community housing providers create 40,000 social and affordable homes.

There’s also increased funding under a five-year, $9.3 billion National Agreement on Social Housing and Homelessness, aiming to double government funding for homelessness services which states and territories need to match.

5. Anti-money laundering measures to apply to real estate agents

Money laundering has become a serious issue in recent years, and now the government is enlisting real estate agents to help fight it too.

It used the Budget to announce that $166.4 million will be used to include real estate agents under Australia’s anti-money laundering and counter-terrorism financing regime. That means we’ll also now be required to report suspicious transactions.

6. Energy bill relief

Finally, the Budget also includes energy bill relief measures, offering rebates of $300 to households and $325 to around one million small businesses starting July 1, 2024. This is part of a broader $3.5 billion initiative aimed at easing cost-of-living pressures.

While this doesn’t necessarily relate directly to property, it will certainly help a lot of home owners in an era of rising interest rates and other costs.

Want more?

If you’re interested in buying or selling property in Sydney’s Eastern suburbs, get in touch.