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Soft sales and credit rationing have put an estimated 34,000 new homes on hold, the Housing Industry Association (HIA) has revealed.
Nearly 50 per cent of HIA members – such as builders – had approved residential projects that had not been started or completed.
Ron Silberberg, HIA’s managing director, said the main reasons why these projects had stalled are a lack of demand and a lack of available finance.
“These findings reinforce the imperative for an early start to the federal government’s second fiscal stimulus package.
“This stimulus includes the construction of 20,000 public and community housing dwellings which will in turn unlock private dwelling projects currently unable to processed due to a lack of sales,” Mr Silberberg.
According to the HIA, a lack of available construction finance was responsible for 44 per cent of all apartments not proceeding to commencement while in the detached house segment 32 per cent of deferred projects reflected a lack of finance.
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