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“Loans for the purchase and construction of a new home fell in January to the weakest month since November 2008. This is before the full impact of rate increases in 2022 hit the market, let alone the February 2023 increase.
“There are significant lags evident in this cycle and the full impact of higher cash rates will not be fully reflected in economic indicators until the second half of the year, at the earliest.
“The higher cash rate is compounding the adverse impact of the rising cost of materials, labour and land as well as the increased costs of compliance due to changes to the building code.
“There remains a large volume of work underway that will be completed in 2023 which is obscuring the adverse impact of rate rises on other indicators such as unemployment and economic growth.
“By continuing to raise rates the RBA will inflict further unnecessary pain on the $120 bn housing sector and related industries,” concluded Mr Reardon.
From today, every new home built in Tasmania must meet the full Livable Housing Design requirements. The Housing Industry Association says this adds thousands of dollars to the cost of building a home, at a time when Tasmanians can least afford it.
Changes to Western Australia's requirements for managing the risks of falls will commence on 1 October 2026, introducing new expectations for builders, contractors and workers undertaking tasks where there is a risk of falling.
As of today, 1 October 2026, all new building work in Tasmania, unless exempt, must comply with all requirements of Part H8 Livable Housing Design of NCC Volume Two.
“The ACT’s housing supply pipeline is weakening, with building approvals in the three months to August halving compared with a year earlier,” said HIA Executive Director ACT and Southern NSW, Geordan Murray.