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Australia Backing Housing Industry with Community Housing Program
Jul 15, 2008

The Australian government is giving support to the housing industry by providing affordable homes to people under community housing schemes.

The Australian state government has disclosed that it would provide affordable houses to the Western Australians under its community housing investment program of $210 Million, as reported by
WABusinessNews.

Following the same line, the Australian housing industry initiated a community housing construction program worth $75 Million on June 5, 2008 for the year 2008-09. Besides, the construction work on over 1,000 social housing units is expected to take off this year. It is also anticipated that this program will yield private equity contributions of around $15 Million in the year 2008-09. The home sales also increased by 0.1% in April 2008 due to seasonal increment. However, the sales of private detached houses fell by 0.2% but multi-unit sales increased by 2.4%.

The rising government spending in the housing industry is due to incessant fall in the sales of new homes in Australia. The declining trend in the housing industry started in 2007 when interest rates began to rise. However, moderation in interest rates and rise in Australian economy in future could help the Australian housing industry to recover from slowdown.

Moreover, the government initiatives to build community houses to give to people at affordable rates could help the Australian housing industry to pick some growth momentum. These community housing programs will help those consumers who are refraining from buying new homes due to higher prices and interest rates. Hence, the industry will get a big boost with returning interest of people in housing market.

In addition to these reasons, upsurge in commercial building construction will boost the Australian housing industry by rising sales of new homes in future. Economic growth is supporting growth in businesses and industries which, in turn, is giving acceleration to commercial building activities. Furthermore, approval to non-residents is highly volatile and there’re indications that the latest spurt in private approvals could increase the growth pace in the Australian housing industry.

According to a Research Analyst at
RNCOS, “The Australian government’s launching of community housing programs could help in increasing the sale of new homes in the country. Now the realtors are also bolstering their efforts by offering cheaper houses to consumers to attract them back to the market.”

Related Market Research Reports:
Opportunities in Indian Housing Sector (2006-2007)