You can't say the construction industry is not working hard enough.

There is a push from policymakers as well towards prefab that you mentioned.

Like most things, we don't think it's going to be a silver bullet.

As I mentioned before, the actual build process is very efficient as it is.

It's everything that comes before the build.

But there is gonna be a role for prefab, especially in the granny flats segment as well.

One of the surveys that we did last year or the year before suggested that builders think they're gonna be building 10 times more granny flats this year than they were just a few years earlier.

From within the industry, what is the sort of commentary on the direction of prices at the moment and also the feasibility of building other types of product?

Do you agree? And what's the message to young people looking to enter the market?

It is a long term problem that has been in the pipeline for a while.

So it is going to take a while to solve.

The underlying demand dynamics are still there.

We still have very strong population growth and tight labour markets.

So on average, people should be able to service a mortgage relatively comfortably.

But on the supply side, we weren't building enough houses even before the recent developments this year.

Should they at least be commended for taking some sort of action or what else should they do? What's the solution here?

I mean, what do you think it could do to the new home building sector?

Well, the, the, the problem is that, um, what happens there ends up, uh, filtering into the new home build market, and if confidence and prices are falling in the established market, that makes new construction less viable.

Now, our forecasts have, uh, are looking like they're going to be softened a little bit, but it's important to, to remember that, uh, home building activity is actually being supported by some good underlying fundamentals.

Population growth is still strong, unemployment rates are still, still low, and there still are broad shortages of housing across the country.

So when we get to the other side of this, this short-term confidence shock, um, those fundamentals should, um, should support home building activity going f- going, uh, further.

I mean, what impact is that likely to have on the property sector too?

too?Directionally a similar impact to the changes in negative gearing.

And what's particularly frustrating is that the government did their own costing for the impacts of negative gearing.

How effective has that been?

improving, but obviously not effective enough.

It's good to hear that governments are trying to speed up that process.

They've been making moves in the right direction, but coming from very, very low levels, less than 1% of recent overseas arrivals into Australia have been skilled trades.

Our migration system historically has very much favoured white-collar workers and university students, not the not the kind of in-demand trades that would help build the housing infrastructure that's actually needed.

So progress is good, but a lot more is needed.

And the skilled migration angle would be the short-term solution to these shortages.

How many homes are we building at the moment?