With a federal election looming on May 3rd, the Australian property industry is bracing for potential policy shifts impacting energy costs, development approvals, and sustainability initiatives. Opposition Leader Peter Dutton’s call for a domestic gas reserve aims to alleviate construction cost pressures related to energy, a move applauded by some seeking immediate relief. However, its long-term efficacy and environmental impact are debated.
The election outcome will greatly influence sustainable building practices. Government incentives for green building materials and energy-efficient designs are crucial in driving industry adoption. A change in government could lead to policy reversals, creating uncertainty for developers with established sustainability strategies. A re-elected Labor government is expected to maintain or enhance existing green initiatives.
The election also coincides with existing market challenges like rising interest rates, material costs, and skills shortages. Policies concerning housing affordability, infrastructure spending, and immigration will significantly impact the sector. Stimulating first-home buyer activity could boost housing demand, while immigration controls might exacerbate labour shortages. Property professionals will closely scrutinize both major parties’ platforms for policy signals, balancing short-term cost considerations with long-term sustainability goals as advocated by groups like the Clean Energy Council who prioritise renewable energy investment. The choice between incremental changes and more ambitious climate action will shape the industry's future.
