Government must co-ordinate at all levels to invest in infrastructure and support the housing market
A co-ordinated approach from government at all levels is necessary to support the housing market and the broader economy, and the need to invest in infrastructure is a critical component of this.
While the global economic picture dictates the need for a conservative budget, spending cuts that aren’t accompanied by a forward-thinking plan will serve only to postpone, and possibly cause further damage, to an already flat housing market.
It’s not just the obvious sectors like real estate agents and tradespeople that are being negatively affected by such an approach. A strong residential property sector has considerable reach down the supply chain and a commitment to delivering new infrastructure is one way to influence confidence and improve activity in the housing market, which has an important flow-on effect.
The federal government’s decision to abandon its support of the north-west rail link, despite its capacity to provide funding, is particularly disappointing given current economic conditions.
A co-ordinated approach involving the delivery of appropriate infrastructure, encouraging developers in the current business environment and supporting affordability is required if the housing market is to emerge from a stagnant state.
Ignoring the infrastructure component represents a missed opportunity for the housing market and the health of the broader economy as well.
Leanne Pilkington is general manager of Laing + Simmons
