South Australia new home building hits ten year low
The South Australian residential property market is struggling from a lack of consumer confidence, with new home construction at its lowest level in more than ten years, the Housing Industry Association (HIA) has said.
HIA chief economist Harley Dale said the poor performing residential construction industry was impacting on the overall performance of the local economy.
He said yesterday (August 9): "New home building activity in South Australia is at its worst levels in over a decade, driven by a combination of low household confidence and excessive taxation of the new housing sector.
"This situation is a substantial drag on economic activity and employment in the state and action needs to be taken now to prevent further significant job losses."
Mr Dale said ramping up confidence levels towards land investment in the state, as well as government commitment towards investment and property reform was integral to reversing the state's housing slump.
Robert Harding, HIA executive director of South Australia, said the local government needed to make a concerted approach to support the new housing industry, including the abolishment of excessive taxing.
"Policies to boost new housing, and therefore state economic activity and employment, will help lift household (and business) confidence and generate revenue for the state," Mr Harding explained.
DT: Government investment and reform is needed to improve the new home building sector in South Australia, experts have said.