Housing Sector In Australia Shows Signs Of Weakening
News Posted On: 17 April 2012
Figures from the Australian Bureau of Statistics show the residential sector in Australia is becoming weaker and new home building, which is often regarded as being a barometer of the state of the economy, is expected to show weaker growth during this year.
The Housing Industry Association, which speaks for Australia's residential construction industry is hoping the central bank will cut interest rates at the beginning of next month, and that the cuts will be passed on in full in order to avoid serious damage to the economy.
They also believe federal and state governments should look at housing policy reform in order to boost the supply of new homes and increase business and consumer confidence. During February the number of loans for owner occupiers dropped by 2.5%, but this is largely due to a substantial fall in the number of loans to first-time buyers in New South Wales. During the same month loans for purchasing a new home fell by 10.4%, but the number of loans for construction rose by 3.1%. Loans for existing homes, or for those remortgaging fell by 4.2%.
Seasonally adjusted, the number of loans for new housing fell by 5.8 in New South Wales in February, by 1.3% in Victoria, and by 2.1% in Western Australia. In the Northern Territory the number of loans for new housing fell by a massive 26.9% in the Northern Territory. In Queensland the number of loans for new housing increased by 4.9%, by 2.8% in South Australia and by 7% in the Australian Capital Territory and by 18.3% in Tasmania.
According to the Housing Industry Association, the residential building industry is being negatively affected by excessive taxation, which is decreasing housing affordability, and negatively affecting the economy. A report by the Centre for International Economics has found new housing is the second most heavily taxed sector.
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Written by Les Calvert
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