Property Council CEO demands mass immigration

In yesterday’s article entitled “Why housing construction will crash in 2022”, I warned that the property lobby would intensely lobby the federal government to restore mass immigration:

“…expect to see intense lobbying from property groups calling on the federal government to provide more subsidies, as well as to open Australia to migrants.

Without a return to the mass immigration population ponzi, the housing construction industry will eventually be forced to contract to meet lower levels of demand. They will fight tooth and nail to prevent this from happening”.

Like clockwork, the CEO of the Property Council of Australia (PCA), Ken Morrison, has done exactly that:

Property Council of Australia CEO Ken Morrison says population growth through immigration needs to be restarted as soon as possible since the success of the HomeBuilder scheme won’t last forever…

“It’s keeping the economy going and keeping construction workers in jobs.

However, Mr Morrison said the “big engine of the economy” which is immigration needs to be restarted earlier than what the budget has proposed.

“If we don’t get population growth restarted, it can only go so far,” he said.

“It is important I think as a country, whether we’re talking about housing, whether we’re talking about tourism … that we look to how we can start renormalising … population growth.

“That does go to our international borders and how we’re able to bring more people into the country.

“We would like to see that restart of migration and net overseas migration earlier than what the budget papers said”.

There is nothing “normal” about the past 15 years of break-neck immigration, which was nearly triple the historical average:

Mass immigration is the ultimate Ponzi scheme, with the property industry privatising the gains while the costs are socialised on the existing population via funding the increasing infrastructure needs (water, power, transport, recreation facilities etc), as well as suffering the downsides via increasing congestion, being crammed into defective high-rise apartments, and lower wages.

Exorbitant property prices in the migrant epicentres of Sydney and Melbourne have prevented nearly an entire generation from owning a home, while consigning the rest to a lifetime of mortgage servitude and shoe-box living.

Therefore, restoring mass immigration – a key demand driver – would significantly erode housing affordability, in addition to consigning more people into living in tiny apartments.

Moreover, what about COVID? In effect, the Property Council (developers’ and real estate agents’ lobby) wants the government to risk our lives in order to keep builders busy and home prices (and speculator’s profits) high.

Sadly, our political leaders don’t care about these truths. After stimulating the construction of thousands of extra homes through HomeBuilder, the federal government will inevitably return to importing hundreds of thousands of migrants to fill them. This is how Australia’s Ponzi economy works.

We are the housing equivalent of a narco state, after all. And the Morrison Government dances to the tune of its property lobby paymasters.

Unconventional Economist
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Comments

    • Strange Economics

      These rich waterfront single mansion dwellers are on commission per head of population – per mortgagee, per car buyer, per supermarket, per credit card. Volume of people is all they want and clip a few thousand from each..

  1. Untimely though it might be, the libs need a hostile takeover like Trump did on the Republican Party. It’s well known that a global elitist hierarchy rules over a dutiful Labor proletariat but so too a ponzi dependent business cabal hold sway over Liberal rank and file helots. Those helots are working against their populist instincts and also their economic interests. Time to cast off their chains and do away with the self serving masters.

    • I think you are preaching to the wrong choir if you think the Libs will have a hostile takeover for housing, the big spruikers of big housing outside of PCA and HIA are the CFMMEU. It is ‘Labour Types’ that want big migration regardless of whether or not they are woke globalists who believe in open borders such as Plibersek or Industrial protectionists who want to make sure that CFMMEU retains there right to earn $90 an hour for big projects. The Libs will not be taken over by Trump rabble because Trump rabble also known as white trash have always been and will always belong to the ALP.

  2. ROSS ELLIOTTMEMBER

    I think the urban planning community needs to shoulder some blame also. Mass population growth and high density cities seems their preferred go to position. Only this week, the Sunshine Coast Qld (pop 300,000) announced its town plan was preparing for another 200,000 people in 15 years. And you guessed it… most of the increase crammed into apartments. That isn’t planning – that’s recklessness!

    • GunnamattaMEMBER

      This precisely.

      Not only have we had macroeconomic policy effectively mandating population ponzi, but we have had a planning world amounting to ‘there is no alternative’ to high density large cities, revolving around a high density inner apartment core with an ‘apron’ of decreasingly affordable suburbs closer in to where the bulk of the meaningful jobs have been deliberately located – involving a quality of life trade off between career aspiration and affordability/time wasted on commute – for the better part of a generation.

    • Too right! All the local government councillors cheering on ‘infill’ and spruiking the conversion of inner-city golf courses to ‘vibrant villages’ need to be examined for concealed conflicts of interest…. obviously the property lobby has infiltrated just about every major city local government, and its high time some of the corruption was exposed and the criminals selling out their towns were hung out to dry!

      no resident wants infill, no resident was density! so Fk off and cut up someone else’s golf course !!!

  3. truthisfashionable

    I had to do a trip to Sydney International Airport this morning. 45mins from Ryde to the Airport leaving at 8:30am is pretty much unheard of in the last decade, but that is all it took.

    All those big advertising boards that pollute Airport Drv/Qantas Drv are blank, clearly not enough eyeballs to warrant having anything up there (graffiti artists looking for a canvas?).

    The drop off was empty, express car park was empty (even though it is shared with a Covid testing site), Arrivals hall was empty (obvious reasons I guess), but check in was surprisingly busy for the flight to Xiamen compared to the other flights who had check-in open at the same time it looked almost double the amount of people.

    Obviously the above is just my anecdata but I wish all my interactions with Sydney International Airport were such a good experience… well right up to being hit $27 for parking.

  4. Jumping jack flash

    “Mr Morrison said the “big engine of the economy” which is immigration…”

    Well.. everything is revealed when it is completely obvious and too late to change.
    Although immigration is a symptom of the actual problem which is insufficient debt growth.

    If Scotty is too quick to restart wage theft without first checking to see whether it is actually necessary, he will doom the economy to another slow slide back to 2019, and then all of this will need to be done again. Probably not as quickly as what happened due to COVID, but certainly restarting wage theft as a substitute to actual wage inflation we will need more stimulus within 5 years. And good luck justifying it.

    Restarting wage theft too early will resume the slow slide into economic catastrophe and more economic contortions, hijinks and shenanigans to try and change the irrefutable truth that debt requires interest to be paid on it, all the while businesses going bust all over the place as people forego spending in order to obtain and service essential debt, and more productive output is allocated to paying interest on debt rather than on spending and wage inflation.

    He’s right about the “engine” part, just not right about what part is the engine.

  5. I’d really like someone to buttonhole these [email protected] and ask them what the end game is. ie how long do we keep growing the population, because if we don’t at some point we’ll have 1 person per sq m across the continent. Do they actually have a population limit it mind, or is it really just “flood the place with people forever”? Any sane person would realise the latter is stupid and self destructive, but I suspect that these are stupid and destructive people, motivated by nothing more than their own greed.

  6. I’d personally like the again thank COVID-19 and the Wuhan Institute of Virology for unleashing what might have been the only external shock sufficient in scale and consequence to cause Australia’s federal government to halt their breakneck quest to fill this continent with excess human capital from foreign lands, well above levels that would be considered #sustainable.

    #THANKS! And here’s to hoping we don’t see it come to an end too soon

    • THIS.

      Sure there are some bad costs of covid … but there have been some really bright points for Australia. The closed borders and reduction of international students is fantastic.

    • Jumping jack flash

      YES

      And it also justified the spending of billions in stiumulus to set the economy back on track. Time will tell if it remains on track, but for now it is travelling along nicely.

      At the end of 2019 the economy was short by around 600 billion of missing “growth” [read: debt] due to the poor decision to slay inflation in 2007. Hopefully enough has been added back to set things right heading into 2021 and then beyond.

      Go you good thing!