SA housing approvals 'are at a decade low'
Article by Mozo
The lack of affordable properties continues to prove problematic across Australia and some industry experts are concerned that the situation will worsen.
Many Australians are finding it hard to stump up enough money to secure a mortgage and housing supply has hit rock bottom in some parts of the country.
The Daily Telegraph recently reported that an increasing number of people are being forced to stay at home with their parents for far longer than they would like and it is clear that a lot of Aussies are feeling the strain financially.
Of course, the construction of new properties would help to alleviate some of the pressure, but leaders at the Housing Industry Association (HIA) believe the amount of building projects that have been given the green light in recent months is far too low.
The organisation highlighted South Australia as an example of why the current housing system is failing.
Although the province saw building approvals rise by 4.2 per cent in June, quarterly figures are at their lowest point for a decade.
The total number of dwellings securing planning permission was down by 15.9 per cent during the second quarter of 2012 and HIA executive director Robert Harding finds the statistics worrying.
"We can hope that approvals in South Australia have finally bottomed out, but there is no clear sign of this to date," he remarked.
"The reality is that approvals for both detached houses and multi units remain at historic lows. This just highlights how much lost ground is yet to be regained in South Australia," Mr Harding added.
This problem is not restricted to South Australia by any means and the HIA confirmed that many other parts of the country are struggling badly.
Mr Harding believes that action needs to be taken at national and state government level in order to stimulate some much needed growth in the property sector. It is absolutely crucial that house hunters are given more incentives to take out a home loan.
Have a question about home loans? Ask the money gurus at Mozo Answers.