Markets15 May 20235 min read
May 2023: the 2023 Budget, immigration and housing
Net overseas migration projected at 400,000 for 2022–23 and 315,000 for 2023–24. Build approvals running at decade-lows. The supply–demand gap formalised in Budget papers.
The math
Australia's underlying demand for new dwellings ran around 230,000 per year in 2023. Completions ran around 175,000. The 55,000-dwelling annual deficit compounded — and compounded most heavily in the cities receiving migration.
Investor framing
Federal Treasury was now publishing the case for new-build investment. Most retail investors were still focused on price recovery. The smart capital was already focused on the supply story.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.