Home
  • plan
  • Invest
  • Property
  • enquire now
  • Learn
Home
DPN
  • plan
  • Invest
  • Property
  • enquire now
  • Learn

More housing stimulus needed: HIA

The Housing Industry Association is calling for greater new home building stimulus, after a new report found housing starts are set to plummet in 2012.

TAGS

Beginner (574) / Intermediate (540) / Expert (564)

The Housing Industry Association is calling for greater new home building stimulus, after a new report found housing starts are set to plummet in 2012.

According to the HIA's summer quarterly national outlook, residential land sales have bottomed at a woefully low level, as have new home sales volumes, while local government building approvals experienced accelerated weakness which took them back toward GFC levels.

New housing finance had, encouragingly, tracked sideways for some months, but remained 2.5 per cent down on the equivalent levels in 2010.

Over the three months to October 2011, total seasonally adjusted building approvals implied an annual level of housing starts (using the long term conversion ratio of 0.961) of around 138,000 – 700 fewer starts than in the GFC-affected calendar year 2009.

While the Reserve Bank has cut rates twice in the last three months, HIA's chief economist Harley Dale said more action is required to help fix Australia's housing supply/demand issue.

"Some recent interest rate relief is helpful and commendable. The RBA will rapidly act more aggressively if they deem it necessary," he said.

"That said, one would hope the Federal Government stands ready to act quickly to stimulate activity in a complementary role to the RBA. The case for this already happening on the new housing front is compelling and has been for a considerable time.

"What should be happening now is direct, short term stimulus to new home building within an over-arching, renewed focus on structural reform to reduce the disproportionately high, inefficient and inequitable cost base of new homes throughout Australia. Housing is shelter, it is a necessity of life. Australia doesn't provide enough of it, in an affordable fashion, for renters or owners.

"So, kill three birds with one stone. Stimulate the new home sector to ensure the short term provision of a larger amount of a necessity good. Create a positive multiplier impact to the wider domestic economy during a time of fragility and uncertainty. Engender a medium/long term level of new home building more commensurate with the requirements of Australia's population which will create efficiency gains and inter-generational equity improvements in the Australian economy."

 


Follow us on Twitter for more news, tips and inspiration.
Like us on Facebook and Google+ explore our Pinterest boards.

Like this article or found it helpful? Share it!

Newsletter

Receive our articles directly to your inbox

Next article

House prices end year on a high

Go to articles list

Programs

Work with us
Giving back
Become an affiliate
Refer a friend
Help desk
Property Management
Finance

Locations

Head office
Australia
Hong Kong
Singapore

Contacts

Toll free in Australia
P. 1300 723 318
Outside of Australia
P. +61 2 9525 2033

Social Media

Newsletter

Terms of use | Privacy policy | Guarantees

This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879. Casa Capace Operations Pty Ltd, NDIS provider number 4050038018 trading as Casa Capace.