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{{propApi.successMessage}} {{region}} Change locationVictoria needs to follow South Australia's lead
Victoria needs to follow South Australia's lead
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The HIA Housing Scorecard report presents analysis which ranks each of the eight states and territories based on the performance of 13 key residential building indicators against their decade average, covering detached and multi-unit building activity, renovations, housing finance and rates of overseas and interstate migration.
“Victoria’s ranking has fallen in recent quarters as key indicators of building activity slow under the weight of rising interest rates,” added Mr Ryan.
“The volume of new homes commencing construction is failing to keep up with the consumer demands produced by the pandemic, and the recent rapid return of overseas migrants and students.
“Key leading indicators have deteriorated dramatically over the last year. New home sales in Victoria are down by almost 50 per cent.
“This has filtered through to lending and approvals data. Lending to owner occupiers in Victoria has been almost 20 per cent below the decade average, while approvals of new multi-units are down by 80 per cent.
“This will compound the shortage of housing that is causing rapid rent price growth.
“The RBA’s interest rate increases over the last year have weighed heavily on Victoria’s housing market, but responsibility must also lie with government.
“The South Australian government has shown a clear path to increasing the supply of new homes.
“South Australia topped the HIA Housing Scorecard, and its strong performance will be supported by policy changes announced in this year’s State Budget which included a reduction in stamp duty, the release of 25,000 blocks of land and an investment in public housing stock.
“Importantly, the South Australian government has concentrated on the basics and its measures respond to consumer demands for housing.
“Supporting new home building by reducing costs, attracting more investment and improving capacity is essential to ensure that an adequate supply of new homes commence construction,” concluded Mr Ryan.
State scores
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