How Does Budget 2024 Impact Sydney’s Inner City And Inner West?

May 27th, 2024 - by Brad Gillespie

With Australia in the grip of a housing crisis, it’s unsurprising that the recent 2024 Budget contains several property-related measures.

We explore what they are and how they’re likely to impact the property market in Sydney’s inner city and inner west.

1. More rental assistance

The most immediate way the budget will impact our area is likely to be via rental assistance.

According to SQM Research, rents have risen by an average of 10.3% over the past three years around the country. In Sydney’s inner west, they’ve risen much faster still, with an average annual increase over the past three years of 17.1%. That makes our area relatively unaffordable for many, even for people on an average income.

To help counter this, the government has used the Budget to provide extra rental assistance to people receiving income support payments or those who qualify for Family Tax Benefit A.

Given ours is an area with a disproportionate number of renters - 39.1% rent privately in Inner West Council compared with a national average of 25.8% - this is likely to have an oversized impact on the local market. In short, it will help people continue to meet their rental payments, even as cost of living pressures increase.

Separate to the rental relief, the government also announced a $300 energy rebate to counter cost of living pressures.

2. More affordable and social housing

The government has also used the Budget to target the housing supply. In doing so, it has pledged a further $1.9 billion in concessional loans for community housing providers. It hopes this will lead to the construction of another 40,000 social and affordable homes.

It’s likely that some of these new homes will be in Sydney’s inner city and inner west, where there is a long history of affordable housing - as well as a pressing need for it.

We’re very conscious that some of our city’s key facilities - such as hospitals and other healthcare facilities, universities and other vital social infrastructure - are located in our part of the world. They’re an integral driver of our local economy. It’s important that the people who work in these can also live nearby, and additional affordable housing measures, as well as rental assistance, should help with this.

3. Student accommodation

We’re lucky to have two of Sydney’s main university campuses here in the inner city and inner west. We also have a host of secondary campuses in our area, too, including universities and a TAFE.

The students who attend these institutions need somewhere to live - especially those who come from outside of Sydney - and the government will be requiring universities to do more to accommodate them by increasing their supply of student housing.

In fact, the Treasurer used his Budget speech to announce that it was going to specifically tie the cap on international students to the amount of housing available.

2023 set a new record for the number of overseas students in Australia, at 713,144 - and this has been one of the major contributors to recent population growth.

An increase in student housing should come as welcome news to many in the inner city and inner west, as it is likely to reduce some of the pressure in the private rental market.

4. Anti-money laundering

Finally, money laundering has become a serious problem in Australia and overseas, with criminal gangs often using phoney transactions to ‘wash’ money obtained illicitly.

Now the government has enlisted the help of the real estate profession to help prevent money laundering from happening.

It will allocate $166.4 million to include real estate agents in its anti-money laundering regime. We will be required to report any suspicious transactions we come across.

Want more?

The 2024 Federal Budget has several measures that are likely to impact the property market here in the inner city and inner west, some of which may affect you personally.

Contact our team today to find out more about how we can help you buy and sell in Sydney’s inner city and inner west.