Home building `stalled by weak demand`

A lack of available finance and weak demand are behind the delays for approved
residential construction projects proceeding to commencement, a survey says.
The Housing Industry of Australia (HIA) says about half of its 1300 members had
approved residential projects sitting on their books that had "not been started or
completed".
This represented about 34,000 new homes, the nation's peak residential construction
group said on Tuesday.
A lack of available construction finance was behind 44 per cent of all apartments
not proceeding to commencement, the survey said.
The figure was 33 per cent for townhouses, duplex and villas, and 32 per cent for
detached housing.
More than half of those surveyed said a lack of sales was the reason behind approved
townhouses, duplex, villas and detached houses not starting.
"The combination of weak demand and credit rationing is preventing the residential
sector from kick-starting the Australian economy," HIA managing director Ron
Silberberg said in a statement.
Mr Silberberg said he hoped the federal government's second fiscal stimulus package,
which provides for the construction of 20,000 public and community housing
dwellings, would help stimulate demand.
"There is a lot of low-hanging fruit that can be picked up quickly," Mr Silberberg
said.
"More than 70 per cent of builders are keen to sell some of their dwellings for
public housing and social housing."