A sharp decline in new home sales has prompted the Housing Industry Association (HIA) to call on the new government to adopt a three point action plan to reduce the impact of regulation on the cost of new housing supply.
The latest HIA - Jeld-Wen New Home Sales Report, a survey of Australia’s major residential builders, shows that the number of new homes sold fell by 7 per cent in July 2010, the third consecutive fall.
Sales were down by 8 per cent over the three months to July to be 2 per cent lower when compared to the same period in 2009.
HIA chief economist, Dr Harley Dale, says the severe decline in new home sales highlighted the need for a new government to implement a housing action plan.
HIA has called on the new government to state their commitment to pursuing three key policy priorities, including a new housing cost reduction program a housing and development ministry recognition and support for small business.
"There needs to be a re-doubling of efforts to reduce the impact of regulation, development charging and excessive taxation on the cost of new housing supply. This action needs to include considerable federal level engagement, without which Australia’s dwelling shortage will continue to increase, placing avoidable upward pressure on existing home prices and disadvantaging households seeking to purchase or rent a dwelling," Dale says.
Detached house sales fell by 7.3 per cent in July 2010, while sales in the multi-unit sector fell by 4.1 per cent.
In the month of July 2010, detached new home sales fell by 12.9 per cent in Victoria, 7.6 per cent in Queensland, 3.1 per cent in NSW and 2 per cent in WA. Sales increased by 4 per cent in SA.
