"The Steroid for Property" tackles one of the most overlooked factors driving Australia's property market skyward—compliance costs. While headlines focus on interest rates and housing shortages, this frank discussion between Billy Drury and property doctor Mark Novak reveals the hidden crisis unfolding behind the scenes.
Drawing a compelling parallel between property developers and farmers, we explore how those who provide essential housing services are being crippled by regulatory requirements. New building codes, sustainability targets, and layers of red tape aren't just bureaucratic annoyances—they're adding months to project timelines and thousands of dollars to development costs. The results? "We're gonna sit here and do nothing because it's too hard," developers are telling us.
The conversation peels back the layers of this complex issue, revealing how compliance has created a situation where building simply isn't economically viable unless property prices rise dramatically. This affects everyone in the market, but particularly first-home buyers, families looking to upsize, and renters caught in the squeeze of limited supply. With a specific look at conditions in the Northern Beaches, where stock levels have noticeably diminished throughout April, we provide context on why these trends matter to everyday Australians.
Most critically, we highlight the distinction between Class 1 (standalone homes) and Class 2 (units/apartments) building classifications, predicting fewer apartment developments in the future—a concerning forecast for affordable housing accessibility. Join us tomorrow as we continue this important conversation with a look at how land tax is affecting tenants across Australia.