Money

'Taxes and interest rates slow building'

New home building has been hampered by high interest rates and excessive taxes.
New home building has been hampered by high interest rates and excessive taxes.

EXCESSIVE taxes and high interest rates are constraining housing starts across the country, the Housing Industry Association argues.

The HIA released its autumn update to its national outlook on Wednesday, forecasting a 5.9% fall in housing starts for 2012 after a 12.8% decline last year.

After the Reserve Bank of Australia left the cash rate on hold at 4.25% on Tuesday, HIA senior economist Andrew Harvey said a combination of factors were stifling growth in the construction sector.

"New home building has been hampered by interest rates that have been too high for too long as a glacial pace of reform in terms of the supply-side of the Australian housing market," Mr Harvey said.

"Put simply, the excessive tax levied on new housing is constraining supply and is harming business conditions and therefore the wider economy."

The outlook also forecasted that housing starts would bottom out at a level 137,820 in the 2011-12 fiscal year before a mild recovery to 151,200 by 2013-14.

Topics:  housing industry association, interest rates, reserve bank of australia


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Achieving to the Max

ILLUSTRIOUS CAREER: Marie and Max Martin.

Max Martin is recognised for his hard work

Central Queensland entrepreneur invents peck-proof helmet

MAGPIE PROOF: Mike from Swoopaway with kids from the Blackwater PCYC.

Local cyclist solving the swooping problem.

Wander through new walking tracks

Explore the Rifle Range Reserve in Emerald.

New walking tracks open in the Rifle Range Reserve in Emerald

Latest deals and offers

40% of teens admit to getting in cars with drink drivers

RACQ research has revealed almost 40% of Queensland teens have been in a car with a driver who was over the legal alcohol limit.

Achieving to the Max

ILLUSTRIOUS CAREER: Marie and Max Martin.

Max Martin is recognised for his hard work

Central Queensland entrepreneur invents peck-proof helmet

MAGPIE PROOF: Mike from Swoopaway with kids from the Blackwater PCYC.

Local cyclist solving the swooping problem.

Wander through new walking tracks

Explore the Rifle Range Reserve in Emerald.

New walking tracks open in the Rifle Range Reserve in Emerald

New CEO passionate about agricultural education

STEPPING UP: Queensland Agricultural Training College's new CEO Mark Tobin with Queensland Agricultural Minister Leanne Donaldson.

Mark Tobin excited for new role.

Drowning Pool gig review at Max Watt's

Drowning Pool played Brisbane with A Breach of Silence and She Cries Wolf at the Max Watt's House of Music.

Drowning Pool prove that 'bodies' hit the floor when they play

#SaveMarinaJoyce: How ISIS theory took over youtube channel

One young Youtuber accidentally gave rise to a conspiracy theory

Talking whiskey with Jack Daniel’s master distiller

It all comes down to the distillery

SIXTY MILES AHEAD sign with Eclipse Records, prepare new album 'Insanity'

Sixty Miles Ahead sign with Eclipse. Photo Contributed

Sixty Miles Ahead to release new album on Eclipse

Thy Art Is Murder are killing it

See Thy Art is Murder on their killer tour happening right now. Photo Contributed

We talk with Thy Art is Murder about touring, babies, and new music

Date announced for Prince tribute concert

A Prince tribute concert will take place later this year

Queensland's $1 town goes under the hammer today

The township of Yelarbon is up for sale.

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

72-year-old Coast developer set to start new project

GREEN LIGHT: The Cosmopolitan has been approved for development at Cotton Tree.

Meet the Canberran set to deliver another chapter for Coast suburb

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

The climb is slow but property on the way up

Michael Matusik, director of Matusik Property Insights.Photo Allan Reinikka / The Morning Bulletin

The improvement would be mild when compared to past cycles