New Houses an endangered species. Where is the building industry heading?
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Yet another drop in the building approvals rate has lead the industry to start wondering whether new homes are going to become an endangered species. The building industry is now pleading with State and Federal Governments to implement important changes quickly to halt this continual decline.
The latest Australian Bureau of Statistics report has found that housing starts are down 12.4 per cent in 2011/12. This follows a decline of 5.6 per cent in 2010/11. In fact, if these trends continue then this will be the 7th fall in the last 9 years.
New South Wales has been hit hard with Victoria building 70 per cent more homes than NSW last year, even though NSW has a greater population. That said, there are grave fears that the building boom in Victoria can’t last as in 2011 Victoria built 40% of the new homes in Australia, even though Victoria only has 26 per cent of the population.
So where is the industry heading?
The big concern is that if the rate of new home starts continues to fall then the construction industry is going to have to permanently shrink its workforce. Consumers are now putting their money into savings and ended the shopping spree of the early 2000’s. Consumers are concerned about job security as every industry except mining and health seems to be in decline. Top that with the ongoing financial crisis in Europe, and the overall consumer sentiment does not look good at all.
To change that, the industry is calling upon the State and Federal Governments to look hard at ways that they can stabilize the continual shrinkage of the building industry, and bring growth back into the sector. Some of the suggestions include:
- Encouraging the RBA to drop the interest rate on home mortgages.
- Increase the First Home Buyers Grant.
- Reduce Land Tax
- Reduce Stamp Duty
Here at Service Central we have been busy engaging with consumers to generate new jobs for builders and tradespeople. Plus, we have also tried to educate those in the construction industry of the need to diversify and build up their portfolio of skills so that they can adapt to this shrinking market.
Do you have any suggestions on what else can be done to stop this shrinkage, and create growth in the building industry once again?
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Encouraging the RBA to drop the interest rate on home mortgages.
over a year ago by Jenny
Increase the First Home Buyers Grant.
Reduce Land Tax
Reduce Stamp Duty
Clearly the above suggestions would stop the property decline but again will anyone listen and implement the obvious!
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