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“Lending for new homes is down by 62.4 per cent since its peak in January 2021, to its lowest level since November 2012,” added Mr Reardon.
“Sales of new homes have stalled in recent months as market confidence declines.
“This poor data is as a consequence of the fastest increase in the cash rate in a generation. Despite this, the impact of last year’s rate increases won’t be fully apparent until late this year.
“The decision by the RBA to increase rates further in 2023, will further erode market confidence and accelerate the downturn that is already evident.
“There are significant lags between a change in the cash rate and its impact on the economy. In this cycle, it will take up to 18 months before the impact of the May 2022 rate increase fully flows through to employment in the sector.
“The supply chain disruptions of the pandemic are easing. Inflation in other economies is slowing and interest rates are not the only tool at governments’ disposal to address the inflationary problem,” concluded Mr Reardon.
Recent changes to planning controls made by the NSW Government further extend permissibility for dual occupancy development in NSW.
Western Australia’s construction industry has faced significant disruption over the past five years, with rising costs, supply chain challenges, and economic uncertainty contributing to the loss of hundreds of registered builders and many more contractors across the state. As the housing market continues to grow and demand for new homes intensifies, rebuilding the builder base is critical — and that starts with supporting new entrants through the builder registration process.
Over the past five years, Western Australia’s construction industry has experienced significant disruption. Rising costs, supply chain challenges and economic uncertainty have contributed to the loss of hundreds of registered builders and many more contractors across the state. As demand for new housing continues to grow, rebuilding our builder base is essential — and that starts with supporting new entrants through the builder registration process.
The Housing Industry Association (HIA) welcomes the Premier’s acknowledgment in Question Time today that he is “...less than satisfied with Homes Tasmania’s performance…”.