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AFFORDABILITY IMPROVES FOR FIRST HOMEBUYERS

Published: August 20, 2008, 12:21 pm
Section: Jon Stanhope, MLA | Media Releases

The Government has welcomed a new industry report showing that first home buyer affordability increased by 10% in the June quarter of 2008, compared to the same quarter in 2007.

The Housing Industry Association State Outlook for the ACT also showed that housing starts would meet a growing percentage of underlying demand, building from 85% in 2007-08 (better than the 82% national average) to 93% (83% nationally) by 2010-11.

And the ACT showed the largest trend increase in building approvals for the quarter - 17.4%.

Chief Minister Jon Stanhope said the HIA expected housing starts to increase by 9% in 2009-10 and by a further 6% in 2010-11, but the market was expected to slow in the lead-up to this rebound.

Investment in renovations was forecast to increase by at least 10% for 2007-08 and to be worth about $380 million by 2010-11.

Chief Minister Jon Stanhope said it was clear that the ACT housing market - like housing markets around the country - was coming ‘off the boil' in response to interest rates and some uncertainty relating to global and national economic conditions.

The ACT Government's affordability strategies were also eliminating the pent-up demand for land, and delivering greater choice to Canberrans seeking properties valued at between $200,000 and $300,000.

Mr Stanhope said the news that affordability for first home buyers was heading in the right direction was very welcome, but he said he feared the trend could easily be reversed if the Liberals gained power in October and delivered on their election promise to abolish stamp duty for first home buyers.

Analysis from Westpac had shown that simply scrapping stamp duty for first-home buyers would lead to an increase in house prices of 2.1%.

Media Contact:

Jess Wurf   6205 0504   0411 772 700   jess.wurf@act.gov.au   
Penelope Layland   6205 9777   0438 289 714   penelope.layland@act.gov.au