Labor Party Is Back in Action, and What Does It Mean for Us?

We strongly believe that a business does not see success for over 30 years (like GPS) without responding to events such as these. 

Many industry leaders such as the Real Estate Institute of Australia (REIA) congratulated the Labor government, with CEO Leanne Pilkington stating, “Labor’s return to office comes with a strong mandate to tackle affordability and increase homeownership across the country”. 

And we agree, there is an expectation on the elected party to make housing in Australia more affordable (Meaning more buyers – Great for those of us that invest in the housing market.) 

So, how do Labor’s housing policies affect us? GPS’s view is that: 

• We have a federal government that remains committed to a ‘Big Australia’. An increase in population will, of course, increase the need for more housing. 
• Despite promises, all sides of politics have demonstrated that they can’t deliver housing, which leaves room for the current development industry to continue filling the gap. 
• Large-scale residential unit and townhouse projects will continue to be problematic to deliver. This is due to a shortage of builders and trades prepared to take on unionised projects. This will keep the ideal project size smaller, meaning a slower solution to the housing demand, but more ability for current players to stay profitable. 
• The builder issue will not be assisted in Brisbane as larger builders will be focused on lucrative infrastructure projects for the Olympics. Having strong builder relationships in the small to medium market will be key. 

This is all good news for the GPS investors. Why, you ask? 

A long time ago, we focused GPS on the niche market of residential development finance in South East Queensland. Back then, we supported builders/developers, as they weren’t the flavour of the month with the banks. 

Fast forward to today. The typical GPS borrower continues to fly under the radar and deliver products. They have the relationships to build the product, and GPS has built relationships with them for over 30+ years.  

It will continue to be a market where, if you can build it, then the demand will be there to sell it. Due to fundamental laws of supply and demand, prices will continue to grow.

Long story short, GPS is forward focused and eager to see how the next few years will look. Our funds are currently open for new investment, so if you’re looking to take advantage of this market, we are here to assist.