Property ponzi ‘doomed without migrants’

Amid the plunge in new home sales:

Australia’s property lobby has demanded the Morrison Government throw open the doors to international students and permanent migrants:

Property Council of Australia chief executive Ken Morrison told The Australian student accom­modation underpinned several markets and the wider sector would not recover in the near term without an influx of migrants.

“There is no reason why we couldn’t transition — dependent on the health advice — towards a resumption in net overseas ­migration and a resumption in ­offshore student visas,” he said.

“You have student accommodation which is directly reliant on offshore student visas and then often the families will buy a unit or an apartment here for the stud­ent. That leads to other investments in property.

“A transition back into normal migration growth that’s safe for Australians will be key. It will be very hard to recover in the near term without it”…

Master Builders Australia chief executive Denita Wawn said any extended slowdown in population growth into next year would ultim­ately harm both residential and commercial builds…

“I don’t think a lot of people real­ise the problems short-term and long-term population chang­es can cause. If your population stays static, you will see a significant downturn in building and con­struction, and that will cost jobs.”

It is a sad and unsustainable situation if the strength of our economy depends on an ever-increasing population via immigration.

The housing industry supports the continuing population increase because it is in their own self interest to do so. Meanwhile, the existing population needs to fund the increasing infrastructure needs (water, power, transport, recreation facilities etc), as well as suffers the downsides via increasing congestion, being crammed into defective high-rise apartments, and lower wages.

A Ponzi scheme is no way to apply government policy for the good of the citizenry.

The construction industry should meet the needs of Australians. Not the other way round.

Leith van Onselen

Comments

  1. DingwallMEMBER

    I have got the petrol (cheap as bro) but just need a few Lordy Lands to start the fire…….

  2. Seriously, these Property Council spivs are just shameless

    They’re not even trying to pretend anymore that 10% and more of our workforce is being enabled by the CCP takeover of this country

    And they’re just fine with that ! Want all of us to be relaxed and comfortable about that particular minor detail.

    In what universe are these treasonous grubs not being thrown in a 3×4 cell for 20 years ?

    • Jumping jack flash

      They only reveal their agenda when it makes no difference if anyone knows.

  3. mikef179MEMBER

    Lol, a whole bunch of people in denial, thinking the pre-2020 world is coming back. It isn’t.

  4. Such a shame. But Im moving to the western USA in a few months. This is a sign for youse kants

    • Good luck with the move. Was in Silicon Valley and San Fran in January, can never get over how such a rich country has such a disconnect to those in need. The richest poor country in the world.

      Australia is heading down the same path so at least with the US you know full well what it is vs what it could be. That, and they still make stuff. We flip houses and serve coffee to each other.

    • Im in Virginia now for the last 2 years (E3 Visa) – bought house and sitting on US $. Loving the CCP hate here.
      Enjoy the US – if they just rid themselves of the weapons fetish this place would be great.

  5. our political elites decided to let property under the bus, after they bailed out the banks, none cares about prices anymore

  6. Why do people keep thinking the crunch will hit when they wind back jobkeeper/seeker?
    If there’s going to be a crunch, they will extend the thing.
    If they don’t extend it, it’s because it’s going to be fairly benign

  7. “A transition back into normal migration”. D’oh, we just got that, Ken, courtesy of the virus.

  8. Can’t see us letting in Indian migrants anytime soon given they don’t look like being able to control the virus there.

    China have also had new cases being reported, and the ongoing political biffo will also help.

    • Yup. And the WHO says the virus may be around forever more, so JobSeeker becomes a permanent fixture, then WW 3 and Chinese cyberwar, accompanied by economic collapse and depression – akka Australian Defense Report, it could all happen within a three month period.

  9. Jumping jack flash

    I’m waiting for the realisation and admission that the enormous 2 trillion dollars of nonproductive mortgage debt is the tapeworm that is sucking the life out of the economy.

    Not even considering principal repayments, and using an average mortgage interest rate of 5%, 100 billion productive dollars that could have been used to reinvest into production through the feedback mechanism of workers buying the goods and services they themselves produce, is instead handed to the banks to do whatever it is they do with it.

    Historically 60% of bank profit is paid as dividends on average but I would be very surprised if the total profit of all the banks issuing mortgages comes anywhere close to 170 billion every year.

    • Mining BoganMEMBER

      Did that for a rural property 2010 or so in WA. Laughed at me then called back so dropped the offer to about 40% below asking. Thought I had it and bang, here come the Chinamen back to town.

      Whoever bought it didn’t worry about asking for a discount.

  10. If the Gov helicopters enough money around for all prices (including wages) to double, but house prices remain nominally stable (and so halve relative to income); problem solved 🙂 Somehow I suspect this is the targeted scenario.

  11. Was listening to that Economics radio show today on Radio National with Peter Martin & the American sounding woman. They interviewed Prof Bob Gregory who I always thought was pretty sensible. But even he was espousing that it would be a disaster if Immigration & O/Seas students did not go back to “normal” level very quickly as this was what was needed to get economic growth & jobs going again. He espoused that this helped save our bacon during GFC along with China & stimulus. If I recall he was on the RBA for some years in late 1980’s & 1990’s. So its interesting where all this crap comes from. (He conveniently did not attempt to define what normal was nor give normal a time frame. Of course Peter Martin also chose not to challenge what normal meant!)

    • They’re cringeworthy
      Martin and Foster
      It’s Akin to an aural Venereal disease

      They are just horrible

      Although I did like peter’s Total Burn when he said Gregory is the man who accidentally gave us the 90s recession

      Gregory didn’t bat an eyelid

  12. The best thing is they can’t even pretend to hide it any more.They’re like a junkie begging for their next hit.

  13. MountainGuinMEMBER

    Student accommodation was dependent upon international students = locals can now better afford going to uni or not having to overfill rental homes.

    Parents of overseas students purchased property = locals dont have to compete against foreigners making homes more affordable and requiring locals to take on less debt.

    There, fixed it for you.

  14. But but but…… immigration wasn’t responsible for rising house prices over the past few years.

  15. Ahhh, patience friends.

    The LNP will mess with the Jobkeeper sooner or later. Way too many young people still eating smashed avocado for Dutton and co.

    Businesses will toss workers to the curb

    And then it won’t matter what the government wants, the momentum of negativity will drag the lot down.

  16. And all sides of Govt can’t wait to answer the call.

    The hypocrisy is so infuriating! How many of these scumbags are penning articles on the importance of migration to housing today, who were throwing out articles and sitting on Q&A panels just a year ago laughing at suggestions that migration has an impact on pricing while labelling everyone a racist and xenophobe that claimed otherwise.