Australia and India will sign a new agreement on 1 million units, and more Indians are pouring in! House prices have reached a high

#01：

A large number of Indian immigrants will influx

Come to Australia to build 1 million houses

The housing crisis in Australia is getting worse and stronger, and high housing prices and shortages have become the focus of people’s livelihood and politics.

Recently, Australia has begun to consider asking Indians to build houses in Australia…

Image source: The Economic Times

Indian Minister of Commerce and Industry Piyush Goyal recently revealed thatIndia is in “in-depth negotiations” with Australia, planning to build 1 million housing units in Australia, with a total amount of up to US$500 billion.

“I’m in deep negotiations with Australian officials and plans to build 1 million homes in Australia. 1 million! Does anyone want to calculate it? Building 1 million homes in Australia is at least a $500 billion opportunity.”

Image source: The Economic Times

The tension in the Australian real estate market is no longer news. Data shows that in the past decade, housing prices in major Australian cities have far exceeded wage growth, and it is extremely difficult for young people to buy a house.

At the same time, the construction industry is seriously understaffed, and many projects are slow to make due to the lack of workers.

Faced with such a situation, the government urgently needs to find “external forces” to solve the urgent needs.

India’s huge demographic dividend and construction labor reserves just happen to provide Australia with the answer.

Image source: The Economic Times

It is reported that Indian workers will become the main force of this plan, and it is even more likely to stay in Australia as an immigration status in the future.

Even the Australian government will directly issue PR to these construction workers. After all, Australia and India have long signed immigration agreements to promote the mobility of students, graduates, academic researchers and business people between the two countries, and it is not impossible for scarce skilled workers.

Related readings:Big news! Australia and India sign an agreement, issue visas unconditionally, get PR quickly! A large number of Indians are coming soon, and it is even more difficult for Chinese to immigrate!

Even if you buy a house in Australia, you can enjoy the same treatment as PR and citizens without paying taxes.

Related readings:The latest official announcement! Indians do not have to pay taxes when buying a house in Australia and enjoy PR and citizenship treatment!

Image source: Hindustan Times

For Indian workers, this may not be just a temporary labor export plan.

Given the project size and cycle length of several years or even more than ten years, a large number of Indian workers are likely to choose to stay in Australia as skilled immigration or long-term residence after completing training and construction.

This means that Australia may usher in a large-scale Indian immigration wave taking housing construction as an opportunity!

Australia’s future demographic structure and labor market may undergo profound changes due to the concentrated influx of Indian immigration.

Goyal said that if the cooperation progresses smoothly,Indian workers will go to Australia for training to ensure construction standards meet local building codes and safety requirements and directly participate in the construction of millions of housing units.

The scale of construction of this million houses is unprecedented and is expected to promote the coordinated development of multiple industrial chains such as Australia’s construction, infrastructure, logistics, and finance.

#02：

Ask the UAE for money to build a house

India and Australia deepen cooperation

The financing issues of the project are also of concern.

Goyal revealed thatIndia has reached out to the UAE and hopes to raise funds for this grand project through a partnership.

As an important financial and energy power in the Middle East, the UAE has long played the role of capital providers in large-scale infrastructure projects around the world. If the UAE funds can be introduced smoothly, the feasibility of the project implementation will be further improved.

At the same time, this housing plan is also closely related to the broader international economic and trade layout.

Image source: Hindustan Times

India is currently actively promoting free trade agreement negotiations with many countries and regions including Australia, New Zealand, Oman and the EU.

Australia not only has housing demand in the economy, but also seeks to deepen cooperation with India at the diplomatic and trade levels, especially in the context of uncertainty in the global trade landscape due to the high tariffs on Indian goods in the United States.

In other words, housing projects are not only the result of economic cooperation, but may also become a new fulcrum for India-Australia relations.

#03：

The triple role of interest rate supply policy

Latest data: House prices hit a high

And at the same time,Australian housing prices have once again set a record.

According to statistics from real estate data company PropTrack, national housing prices rose by 0.5% month-on-month in August, which is the eighth consecutive month of growth. The average national residential price has climbed to $835,000.

House prices have risen by 5.3% in the past year, equivalent to an increase of $47,900 from the same period last year. This means that home buyers would now pay nearly $50,000 more for the same property if they waited and watched last year.

Eleanor Creagh, senior economist at REA Group, notedThis upward trend is closely related to the three interest rate cuts this year.

The cut in interest rates has improved the loan capacity of home buyers, market sentiment has been boosted, and more buyers have re-entered the market.

Loan intermediary Aidan Hartley revealed that

“The phone almost rang, and many people were eager to take action before the market heated up further.”

Image source: News.au

The rise in housing prices is no longer limited to a few cities, but is showing a trend of full diffusion.

From the perspective of major cities, house prices in the seven capital cities all rose, with only Hobart recording a decline (-0.5%).

The market in remote areas was also active, up 0.3% in August, with an annual growth of up 6.6%, continuing to outperform the capital cities and continuing the stronger growth trend in the past five years.

Of particular note is Sydney.

The latest data shows that the median price of detached houses in the city has reached A$1.58 million, which is 66,000 more than the same period last year. The median apartment price also rose to A$861,000, an annual increase of about A$28,000.

The auction market has reappeared, and the liquidation rate has returned to the high of 70%-80%, showing a tight situation of supply and demand.

Image source: News.au

In addition to interest rate cuts, insufficient supply is also an important reason for pushing up housing prices.In the past year, due to rising construction costs and lagging approvals, the number of newly built housing has failed to meet the government’s National Housing Accord target.

At the same time, the population continues to grow and the scale of immigration has expanded, further increasing housing demand.

From the perspective of buyer groups, first-time home buyers are also “involved” in this round of market.

The federal government announced that it will expand the Home Guarantee Scheme from October.Buyers with a down payment of only 5% are allowed to buy a house without paying high loan insurance and directly under the government guarantee.

Experts believe that this policy will undoubtedly “add another fire” to the already hot market.