The Labor government's decision to introduce a carbon tax could have a negative effect on the building of Australian homes, according to Dr Andrew Wilson of Australian Property Management (APM).
In an interview with Real Estate Business, the expert warned that less residential property could be built as a result of the new measures.
This is because the cost of construction is likely to increase under the new legislation, with a rise of between two and five per cent mooted by industry analysts, he explained.
"We need to wait and see how all the various pieces of the supply chain for new housing are affected by the tax," added Dr Wilson, noting that residential construction of new homes and apartments is likely to be the area most affected by the changes.
The opposition Liberal party has warned that the move could lead to job losses and increase household costs at a time when many consumers are cash-strapped.
Posted by Steve Douglas
