House building fell to its lowest level in half a year last month. The Australian Industry Group’s Australian Performance of Construction Index had a reading of 36.2 in March. House building had a reading of 30.3 and apartments were 30.5. Readings below 50 indicate contraction.
Meanwhile, the Housing Industry Association has called for urgent tax reform, saying that in some states the total tax bill amounts to over 40 per cent of the final price of a new home. The report by the Centre for International Economics, commissioned by the HIA shows the majority of taxes are inefficient, with stamp duty one of the biggest offenders.
In other property news, the total value of dwelling finance commitments fell 1.3 per cent in February, compared with the month before, seasonally adjusted. The number of commitments for owner occupied housing finance fell 2.5 per cent.
And owning a house in the suburbs is no longer the great Australian dream. Superannuation fund SunSuper surveyed 1,300 respondents and only nine per cent said they dreamt of a quarter acre block with a white picket fence. Financial independence at retirement was the most popular dream, followed by early retirement.
