A recent report by the Housing Industry Association (HIA) shows that South Australia recorded the weakest sales result in May 2017 in the survey’s seventeen-year history.
According to the report, which was released at the end of June, the number of new detached houses sold in SA declined by 15.6% in May, an abrupt turnaround on a 7% improvement that was recorded in April.
In the three months leading up to May 2017, new home sales were 8.8% lower than the same period a year ago.
Commenting on the report, Real Estate Institute SA (REISA) CEO Greg Troughton told The Advertiser: “These figures scare the hell out of me… If we are seeing that result now, I am fearful at what we are going to see over the next 36 weeks.”
Troughton went on to stress the importance of new builds to the SA economy.
HIA Executive Director Brenton Gardner echoed this sentiment, adding that housing had allowed Australia to mitigate the damage caused by the Global Financial Crisis (GFC).
“Home building has a proven record in supporting economic growth, helping Australia avoid the worst of the GFC and turning around the fortunes of states like NSW in recent years,” he said.
“HIA’s New Homes Sales report is an important lead indicator of short-term prospects for new dwelling building activity and in South Australia the picture we have from our members now is clearly not a pretty one,” Gardner concluded. “The systemic decline in activity across the SA economy cannot be ignored.”
As well as pointing out the problem, Gardner is also offering the State Government possible solutions. He believes that by promoting population growth, increasing first homeowner grants and expanding stamp duty concessions to the entire market the SA Government can alleviate this situation.