Victoria, Australia - Housing Industry has been contemplating on the sudden problems that the country is experiencing. The significant fall of June’s home or housing sales had dropped for the second month since previous months indicating a sudden rose of interest rates, and this had tremendously affected the home industry. After the Housing Industry Association conducted home builders’ activity report, it showed then that the new home sales status in June had slipped by 5.1 percent and had gone down since the sales of the new detached homes had fallen in a whopping 6.6 percent.
In Victoria, there was a massive fall of the detached homes for sale that are sold in the area, and by massive it was about 10 percent in June that it marks down so appallingly. Followed by a 6.4 percent fall in May looking back to the 5.1 percent that was recorded in the national drop.
One of the major problems that are being addressed is the shortage of land in which houses are being developed. This has been acknowledged by the housing industry association as a major discouragement for home seekers to build their new homes.
HIA chief economist Dr Harley Dale says, “Lack of readily available land and hefty infrastructure charges have combined with a chronic lack of development finance to put the brakes on sales and development activity”.
Furthermore, he reiterated that Victoria’s Parliament had recently acted on a legislation in widening the scope for urban land and to execute more development in these areas, however the federal government has been scarce in their funds thus causing an ongoing shortage of new dwellings.
“Concerted action is required to reduce the impact of regulation, development charging, and excessive taxation on the cost of new housing supply. Inaction means that Australia’s dwelling shortage will continue to increase, pushing up existing house prices and disadvantaging households seeking to purchase or rent a dwelling,” Dr Dale said.
Source: Herald Sun News
In Victoria, there was a massive fall of the detached homes for sale that are sold in the area, and by massive it was about 10 percent in June that it marks down so appallingly. Followed by a 6.4 percent fall in May looking back to the 5.1 percent that was recorded in the national drop.
One of the major problems that are being addressed is the shortage of land in which houses are being developed. This has been acknowledged by the housing industry association as a major discouragement for home seekers to build their new homes.
HIA chief economist Dr Harley Dale says, “Lack of readily available land and hefty infrastructure charges have combined with a chronic lack of development finance to put the brakes on sales and development activity”.
Furthermore, he reiterated that Victoria’s Parliament had recently acted on a legislation in widening the scope for urban land and to execute more development in these areas, however the federal government has been scarce in their funds thus causing an ongoing shortage of new dwellings.
“Concerted action is required to reduce the impact of regulation, development charging, and excessive taxation on the cost of new housing supply. Inaction means that Australia’s dwelling shortage will continue to increase, pushing up existing house prices and disadvantaging households seeking to purchase or rent a dwelling,” Dr Dale said.
Source: Herald Sun News
