We need some affordability circuit-breakers from the state government, including adjustments to the rate of stamp duty and an urgent review of the new Building Act to ensure it frees up the process for creating new homes to meet demand.
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Sydney (PRWEB) July 05, 2012
The Real Estate Institute of Western Australia (REIWA), a leading real estate industry resource for consumers looking to buy, sell, or lease property, recently released data showing that the number of properties (including units, land, and houses for sale, Perth and elsewhere in Western Australia) available to the Perth market has dropped to 12,975 in early June 2012—the lowest supply figure the area has displayed since April 2010.
According to REIWA's Deputy President Ian Cornell, while the supply drop is a positive sign that consumer confidence is returning to the established houses market, housing supply leaders in Perth can still expect "storm clouds" to come rolling in. Cornell points out that the government's introduction of the New Building Act in April led to a dramatic collapse of building approvals, thus holding back the building sector and slowing down the construction of new homes.
“If this persists for a few more months, we will see a fall in new dwelling starts for both the June and September quarters," the Deputy President explains. “This will ultimately lead to a supply imbalance that will, in turn, put pressure on established housing. The knock-on effect will ripple through the existing residential housing market and put price pressure on both buyers and renters for the latter half of 2012."
Cornell's call for action also follows the release of REIWA's Housing Affordability Report which found that the affordability of homes for sale (Perth, Western Australia) fell by 1.2 percentage points over the March quarter. Aside from the Northern Territory, Western Australia is the only state or territory where housing affordability went backwards for the first quarter of the year.
On the other hand, the Australian Bureau of Statistics recently reported as well that the number of home loans taken out and approved across the country has gone up 0.2% or 46,632 units in April this year—a finding that the Housing Industry Association (HIA) welcomes as good news, especially since it was the second consecutive month of growth.
HIA's chief economist Harley Dale emphasises that governments have the responsibility “to act in terms of investment and policy reform to boost new housing supply” and arrive at a solution towards a national recovery of Western Australia's residential housing sector. “Boosting housing supply is an economic and social imperative and requires: immediate action to lift new home building and therefore restore confidence; a reduction in excessive taxation; increased infrastructure investment; and a framework to increase access to finance for residential development.”
Cornell further stressed, “We need some affordability circuit-breakers from the state government, including adjustments to the rate of stamp duty and an urgent review of the new Building Act to ensure it frees up the process for creating new homes to meet demand.”
REIWA executives liaise with members of parliament to lobby for the reform of policies in real estate in Perth that touch on legal matters, planning decisions, consumer protection laws, and taxation arrangements, among others. For advice and assistance regarding all aspects of real estate transactions such as arranging the sale or purchase of property, coordinating with a landlord, or engaging a real estate agent to become a property manager, REIWA encourages the public to contact its Public Information Line on 9380-8200.