I'm glad you've highlighted this problem. It's time for a new political party - 'Affordable Housing Party".
Low capital gains tax is one cause but not the only reason.
Negative gearing on established homes needs to be phased out. I think this is encourages speculation and high house prices.
Land tax is a moot point but I think increased rates on vacant properties would be a fair move.

having bought a investment property in the 1990's I doubt whether I would be in a hurry again. It was trashed within a year by a single mum and to this day it is doubtful I have made any money out of it. The banks, the real estate agents and the welfare recipents were the biggest winners. The loser was the one trying to do something about helping towards my own retirement. It is certainly easier to bludge on the taxpayer in retirement than have fools accusing those who try and improve their lives as the villians just because they get a tax break in helping the homeless.

this..says it..all

<<..Over $50 billion is given to property investors
in tax subsidies..each year.

Those on Newstart receive barely $6 billion in welfare.>>

then add in..the rent assistance..so..the investor can..off set
that to..the loss their property makes after leasing..their own home back..via caymen-islands..or amsterdam..or isle of man

govt must get the heck..out of housing
and investors should be paying back..allthe cash..
but hey lobbied their mates..are all..doing it..too..is no excuse

govt should step in
or squatters should just move in..and lease it to each other..

[a lease is lawfull excuse to occupy.]

...64 thousand empty homes in Melbourne alone: Dare I suggest this would be a consequence of selling our housing stock to foreign investors.

Karl if you want to house the multitude, go for it, provided you do it with your own property, money & time. Just leave the rest of us out of your plans thank you.

If you are stupid enough to rent out houses, that is your choice, but you have no right to try to force others to risk their properties to renters. I have seen too many good people have houses trashed by yobos to ever consider renting anything other than commercial premises.

"enough housing for at least 160,000 people"

Well, that covers this year's immigrants.
What about next year? And the year after.

Stop immigration and demand (and therefore prices) will drop precipitously.

A reason not mentioned in the article for disuse is all the local rules about zoning and building regulations.

Something built in 1887 is expected to comply with contemporary regulations or no development application will be approved.

Change of use DAs and zoning rules complicate the reuse of vacant buildings for a different purpose.

Many buildings are probably tied up in litigation between competing "heirs".

Repealing or amending these laws and regulations would remove a lot of the obstructionist red tape.