Get notifications in real-time for staying up to date with content that matters to you.
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.
COMMENT HERE
The non-major bank has teamed up with a credit reporting firm to ...
At-risk women living in SA will be given access to free financial...
Napoleon Finance broker and director Sam Carello has revealed his...
The number one magazine for mortgage brokers
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Do you expect mortgage applications to increase or decrease over Summer?
