Despite the best efforts of the government to encourage Australian’s to build new homes, June housing start commencements released today show continued falls.
While private sector housing starts is down 15.7% over the course of the past year, other residential building starts which include units and apartments are down 41.4%.
This quarter alone, other residential building starts have fallen 14.4%, extending the 14.4% fall in the previous quarter.
Interesting the difficulty people have differentiating a bull market from a bear market. If property was really going to the moon instead of into the toilet, we wouldn’t need first home owner bribes to keep building, it would just happen. Falling construction despite large bribes and gigantic tax concessions means we can’t afford to pay for construction. QED.
I saw a stat that Canadians have 85% of net wealth tied up in housing. 85% of wealth in a non-productive asset, totally dependent on the capacity of households to earn an income is insane. Do you have any info on the equivalent for Australia?
Sound very true, and yet, when you look at the sold section in Domain.com.au or realestate.com.au they would have you believe that they are selling stacks and stacks on the city fringe. Could this be the cyber version of putting sold stickers on the board out the front of the development to try and instill a sense of urgency in the buyers? Otherwise know as a lie.
Two other things of interest: Read that the chinese are buying property in a big way here in Australia since we relaxed our foriegn ownership laws. Are we competeing with foriegners for our properties?? Sounds a bit like selling our children future away.
Second: Article suggesting that most working and middle class are being priced out of the market. Well Duh! Waiting for the revolution….