Despite the escalating problem of shortage of housing in Australia and the overall decline in the levels of new property development, there appears to be a lack of adequate action on behalf of the government to address these issues. HIA has issued a call to the federal government to implement some strong measures in this regard.
Figures released yesterday by the ABS had reinforced the fact that residential building activity was progressively declining towards the end of 2010, with residential building work falling 0.6 per cent in the December 2010 quarter.
HIA expects weak development data to continue well into 2011.
Based on current statistics, 2011 is set to be one of the weakest years for new home starts since the mid 1990s.
The Federal Government needs to consider introducing some sort of short term stimulus measures to encourage new housing activity and reverse the current housing slump that is hurting all sectors of the economy including the renters, the first home buyers and existing home owners.
“New home building activity peaked back in mid-2010 and on-going weakening in new housing conditions is having a significant adverse impact on governments’ budgets.”
In the December 2010 quarter, seasonally adjusted new residential work done dropped by 2.3 per cent in New South Wales, 4.8 per cent in Queensland, 5.8 per cent in Tasmania, 0.4 per cent in the Northern Territory, and 10.4 per cent in the ACT.
With population continuing to grow, number of new developments dropping away as ids the number of new home loans taken out, it is only a matter of time before homelessness reaches epidemic proportions.