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Writer's pictureLuke Starr

TIP: FHBs flocking to new builds, some hope for apartments, calls for tax cut escalation

There's a lot of excitement about first home buyers today


It used to be we'd only camp out for tickets if there was a guitar, an inflated pigskin or a new iPhone involved. Seems we're extending the tradition to being first in line for new housing lot allocations.


Stockland is reporting that people have camped out to get first bite at the Elara development in Marsden Park, and Jinding are saying the same on its Halcyon development outside Geelong. BIS Economics' Robert Mellor doesn't think first home buyers are moving in any great numbers to greenfield developments on city fringes - but the anecdotal evidence is compelling.


Mr Mellor thinks it'll be the 2020 September quarter when the residential building sector starts to turn around, which is sooner than predicted even last week. Tim Reardon of the HIA thinks the bottom-out may be even sooner, by mid-2020.


Apartments are appearing to show some green shoots as well. While the hangover of reduced values on off-the-plan apartments purchased during the boom is a real splitter - just as this guy - Chinese developer Poly sold 37 of the 40 off-the-plan apartments released on its new Bankstown project during its launch event on the weekend.


Existing home listings are also rising. In October, the number of Sydney listings rose 4.2 per cent - which will go a ways toward disproving the idea that prices are rising so fast in the emerald city because there aren't enough houses for sale.


The figures, from SQM Research, show that while national listings are below 2018 levels, there are actually more houses for sale in Sydney and Melbourne compared to this time last year.


Banks, NSW call on ScoMo to speed up tax cuts


CBA and Westpac have called on the Morrison government to fast-track legislated tax cuts that are scheduled for 2022, and bring them forward to July 2020. Their argument is that not enough is being done to stimulate spending; as we know from recent retail numbers and job ad declines, any savings from tax and interest rate cuts to-date are being pocketed rather than spent.


NSW Dominic Perrottet, who is becoming increasingly vocal with a push to influence national stimulus and tax reform measures, is today backing CBA and Westpac's call. He says that suggesting a new federally-funded infrastructure program will do little to help NSW, which is already at peak infrastructure development; "(L)et's have a discussion about what is the best tax mix for the states to drive productivity growth and economic growth."

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