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Housing Policy Disaster: Property Approaches a Tipping Point

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Renta; Vacancy rates
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Housing Policy Disaster: Property Approaches a Tipping Point

 

Experts predict the end of 20 per cent plus rent hikes, but the rental crisis is expected to persist as tenants compete for limited properties.

The Australian rental market is at a critical juncture. Vacancy rates have edged higher, and the pace of rental growth has slowed, but relief for renters remains distant. According to SQM Research, Australia’s rental vacancy rate increased slightly to 1.3 per cent in June from 1.2 per cent in May. Sydney’s vacancy rate rose to 1.7 per cent, Melbourne to 1.5 per cent, Brisbane to 1.1 per cent, and Perth to 0.8 per cent.

Although still a landlord’s market, SQM Research managing director Louis Christopher noted a shift. Historically, rental vacancies increase in June due to a winter lull, but this seasonal effect disappeared in 2021 and 2022. “The fact that this year we’ve recorded a seasonal increase suggests the rental market is starting to return to more normal activity levels,” he said. Christopher is confident that the era of 10 to 20 per cent annual rental increases is ending.

Tenants have responded to soaring rents by sharing housing, relocating to regional areas, or buying their first homes. This has been factored into current rents, leading Christopher to predict that future rent increases will align more closely with inflation trends.

Despite this, the rental market remains in severe shortage and is unlikely to materially soften for several years. A slight increase in vacancy rates in Sydney, Melbourne, Canberra, and Brisbane’s CBDs indicates that student demand for rental accommodation may have peaked, with migration rates expected to slow.

Dr. Peter Tulip, chief economist at the Centre for Independent Studies, agrees that the rent boom is tapering off but emphasises that the crisis continues. “Vacancies are unusually low, and the rental market remains extremely tight,” he said. He expects rents to continue rising faster than other prices and incomes, presenting a grim outlook for renters. “We have a housing policy disaster in this country, and it’s going to get worse,” he warned.

Tulip supports the NSW government’s push for more housing, especially around train lines, and calls for other governments to adopt similar measures. Despite a slight improvement, he insists that shortages remain significant.

Dr. Nicola Powell, Domain’s chief of research and economics, noted that the rental market began to turn a corner several months ago but will take longer to fully rebalance. “The vacancy rate has been nudging higher, and the pace of rental growth has slowed,” she said. Powell believes the 20 per cent annual rent increases are over.

In the June quarter, Sydney’s house rents held steady for the first time in 18 months, while Melbourne’s house rent growth was the lowest since March 2023. Powell points out that net overseas migration remains high but is decreasing, investors are returning, and households are adjusting by moving into shared housing or back with parents. “It is technically still a landlord’s market across Australia, but rental price growth has stabilised over the quarter,” she said. “The affordability ceiling hasn’t been reached; it’s been smashed.”

 

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Vigilance Urged to Combat Invasive Giant Devil’s Fig

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Vigilance Urged to Combat Invasive Giant Devil’s Fig

 

By Robert Heyward

North Coast landholders are being called upon to stay vigilant against the spread of Giant Devil’s Fig (Solanum chrysotrichum), a highly invasive woody weed that poses a significant threat to agriculture and natural ecosystems. This problematic species is prevalent in grazing lands, waterways, forests, roadsides, parks, and gardens, particularly in the coastal regions of northern and central New South Wales.

Ashley Donges, Regional Weed Coordinator for North Coast Local Land Services, highlighted the critical role of community involvement in controlling this invasive plant.

“Preventing the spread of Giant Devil’s Fig is crucial for safeguarding our agricultural productivity and protecting native ecosystems,” Donges said. “We urge all residents and landowners to actively identify and manage this weed to minimise its impact.”

Giant Devil’s Fig competes with desirable pasture species, leading to reduced agricultural productivity and increased costs. The plant contains toxins that can harm livestock if ingested in large quantities, and its sharp prickles can cause injuries to both humans and animals, as well as hinder access to water sources for livestock. In natural landscapes, the weed forms dense thickets that outcompete native vegetation, further degrading the environment.

“Our goal is to equip the community with the knowledge and tools needed to combat Giant Devil’s Fig effectively,” Donges continued. “By working together, we can mitigate its impact and protect our valuable natural resources.”

Under the NSW Biosecurity Act, all residents have a General Biosecurity Duty to prevent, eliminate, or minimise the biosecurity risk posed by Giant Devil’s Fig.

The weed can be identified as a shrub or small tree up to four meters tall, with prickly stems and hairy leaves when young. It produces small, white star-shaped flowers in clusters from autumn to spring, followed by round berries that turn yellow or orange-yellow.

For detailed identification and control methods, residents are encouraged to visit the NSW WeedWise website.

There is a Giant Devil’s Fig Exclusion Zone covering the local government areas of Bellingen, Clarence Valley, Coffs Harbour, Kempsey, Lord Howe Island, Nambucca Valley, and Port Macquarie-Hastings. In these areas, residents must notify their local council if the weed is found and eradicate it immediately. A Containment Zone covering Ballina, Byron, Kyogle, Lismore, Richmond Valley, and Tweed local government areas requires residents to prevent the plant’s spread, reduce its impact, and report sightings to Rous County Council.

For technical advice and assistance, residents can contact their local council’s weeds officer or consult resources available on the NSW WeedWise website

 

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NSW Aquaculture Industry Sets $300 Million Target for 2030

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NSW Aquaculture Industry Sets $300 Million Target for 2030

 

By Ian Rogers

The Minns Labor Government has pledged to collaborate closely with the aquaculture industry to double the farm gate value of New South Wales’ aquaculture sector to $300 million by 2030. This ambitious goal will be pursued through innovative research, ongoing investment in breeding programs, and a strong commitment to enhancing water quality.

The announcement was made in conjunction with the launch of the NSW Aquaculture Vision Statement during the national Oyster Industry Conference held in Port Macquarie, attended by over 300 delegates from across Australia and internationally. The Vision Statement outlines a comprehensive strategy for the development of the state’s aquaculture industries, focusing on seafood production, bioproducts development, and climate change adaptation.

Key initiatives to achieve the $300 million target include:

  • Risk Management: Implementing a breeding program for the oyster industry, alongside exploring alternative species.
  • Innovative Research: Conducting cutting-edge research at DPIRD research stations and in collaboration with industry partners.
  • Expanding Marine Aquaculture: Identifying and opening new areas for marine aquaculture, including mussels, oysters, and algae.
  • Environmental Benefits: Promoting the environmental advantages of aquaculture, such as the nutrient uptake capabilities of algae, oysters, and mussels, which contribute to water quality improvement.
  • Streamlining Biosecurity: Simplifying aquatic biosecurity regulations to enhance access to interstate spat supply.
  • Water Quality Enhancement: Protecting and improving water quality, a critical factor for sustainable aquaculture.
  • Aboriginal Participation: Creating opportunities for Aboriginal communities to engage in aquaculture businesses.

The government, in partnership with the industry, will develop a detailed roadmap to guide the implementation of these initiatives, all aimed at reaching the $300 million goal by 2030.

The oyster sector, the cornerstone of NSW’s aquaculture industry, has seen rapid growth, with a 30 percent increase in farm gate value in 2022/23, reaching $78 million. This sector also contributes over $30 million to the state’s economy, providing thousands of jobs across production, wholesale, processing, retail, and agri-tourism. The industry’s commitment to water quality monitoring and marine environment protection remains a source of pride.

To support the industry’s vision, the Minns Government has announced a $3 million investment in upgrades at the Port Stephens Fisheries Institute. These enhancements will improve breeding and research facilities for shellfish, including oysters and finfish, fostering innovation in seafood production.

Additionally, financial support has been extended to aquaculture and commercial fishing businesses affected by natural disasters and aquatic diseases, such as the White Spot prawn virus and QX disease in Sydney Rock Oysters.

Minister for Agriculture and Regional NSW, Tara Moriarty, acknowledged the challenges faced by oyster farmers in recent years due to storms, floods, and climate impacts. Despite these obstacles, the increasing productivity of the industry reflects its resilience and the dedication of those who work in it. She emphasized that the NSW Aquaculture Vision Statement is a product of the collaborative efforts of oyster farmers, the aquaculture industry, and the government, all working towards a future where NSW-grown oysters are enjoyed both nationally and globally. The government’s investment in research and infrastructure aims to drive sustainable growth, resource development, and innovation within the industry.

Brandon Armstrong, Chair of the NSW Farmers Oyster Committee, expressed optimism about the future, highlighting the industry’s embrace of new opportunities and innovations. He noted that the recent conference served as an important platform for industry stakeholders to connect, share knowledge, and learn from one another, particularly as the Mid Coast region continues to recover from recent hardships.

 

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Free webinar for farmers to learn how RIC loans can help rebuild and recover from severe business disruption

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Free webinar for farmers to learn how RIC loans can help rebuild and recover from severe business disruption

 

Australian Government farm business lender, RIC (Regional Investment Corporation) is hosting a free webinar on 18 September 2024 for farmers, advisers and agriculture industry representatives to learn more about how RIC’s low-cost Farm Investment Loan can help support farm businesses to rebuild and recover after severe business disruption.

RIC Chief Executive Officer, John Howard, said RIC’s Farm Investment Loan is aimed at supporting farmers who have experienced significant financial downturn, as a result of an unforeseen disruption or cumulative impacts to their business.

“Our Farm Investment Loan recognises that unexpected business shocks outside a farmer’s control can play havoc with financial plans. With a low variable interest rate and interest-only terms for the first five years, RIC loans can provide some financial relief to help farmers get back on their feet,” Mr Howard said.

“To be eligible for a Farm Investment Loan, farmers need to show their underlying business is solid, but that they need help to recover following an event that has financially impacted their business, like drought or other natural disasters, or even a biosecurity event.

“More than 100 people from across the country have already registered to learn more from our specialist Agri Lending Manager and one of our customers who will share their experience,” Mr Howard said. Queenslander cattle grazier Rachael Lehmann is pleased to join the webinar to help other farmers learn more about how she and her husband Dane benefited from a RIC Loan. She will share how their low-interest loan supported their recovery and helped improve their business after experiencing drought and successive natural disasters.

The RIC Farm Investment Loan enabled them to refinance part of their existing commercial debt to RIC’s concessional variable interest rate. This allowed the business to improve cash flow, enabling them to recover faster and move forward. “The change in interest rate is quite a substantial amount of money for us, so it has taken the pressure off. It just meant that we were going to have the opportunity to get ahead.

“It’s a huge step up for us and it will have amazing onflow effects for our cost of production and that’s very exciting,” Rachael said.

The Farm Investment Loan provides up to $2 million over a 10-year term with the first five years interest only followed by principal and interest for the remaining five years. The current variable interest rate is 5.18 per cent and there are no fees to apply, make extra repayments, or for early loan repayments.

The free webinar is on 18 September 2024 from 12pm-1pm AEST, to register visit. For more on the Farm Investment Loan visit here. Read more about Rachael and Dane Lehmann’s story here.

 

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