Housing Construction Rises By 4.2 Per Cent
By Peter Sarmas on 8 May 2013
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New housing construction rose in March compared to February according to the latest New Home Sales survey, commissioned by the Housing Industry Association (HIA).
The survey, released in May, incorporates Australia’s largest volume of builders. It revealed that seasonally adjusted new home sales rose by 4.2 per cent in March 2013, and new house sales reportedly increased by 3.9 per cent following a 4.0 per cent decline in February. New apartment sales jumped by 5.6 per cent in March, following an 11 per cent fall in February.
“A bounce back in March after a disappointing result for February is a good result to see,” said HIA Chief Economist Harley Dale. “It was important we saw a rise, even one that didn’t completely eradicate the February decline.”
Mr Dale said government tax and regulatory restrictions continue to hinder growth on new housing construction. He urged the Federal Government to boost new housing supplies through economic reform. “There is an urgent need to identify sources of revenue growth – the residential construction sector can deliver such growth in spades if the government is bold enough to talk reform as well as budgetary crisis, the latter of which is damaging to business and consumer confidence.”
Mr Dale elaborated by saying, “Economic reform directed at residential construction boosts new housing supply, economic activity and employment, and installs a vital cog in the wheel of fiscal recovery.” Mr Dale said one area where the government can make changes is in the red tape. “A 1 per cent reduction in red tape can generate $5.10 of additional GDP per increased dollar of residential activity. That’s a $1.15 billion per annum boost to economic activity.”
The HIA report also revealed a jump in new home sales by 16.3 per cent in New South Wales, 7.3 per cent in Victoria, 3.2 per cent in Queensland, and 5.7 per cent in South Australia. However, house sales declined by 5.6 per cent in Western Australia, despite three previous months of consecutive growth.
