Over on SMH they have a story at the moment about 16.400 homes being delayed because things are not good economically for the developers.
"Almost 16,400 dwellings in NSW were approved but not yet commenced at the end of March, analysis by KPMG shows, the highest number in over four years. Around three-quarters of the not-yet-commenced dwellings are slated to be apartments or townhouses, mostly in Sydney."
"KPMG urban economist Terry Rawnsley, who did the analysis, said property developers are shelving projects because of soaring construction costs, rising interest rates and lacklustre property prices."
How does that work? Surely prices there are better than they have ever been, so why are they not worth building?
Select to expand quoteFormulaNova said..
Over on SMH they have a story at the moment about 16.400 homes being delayed because things are not good economically for the developers.
"Almost 16,400 dwellings in NSW were approved but not yet commenced at the end of March, analysis by KPMG shows, the highest number in over four years. Around three-quarters of the not-yet-commenced dwellings are slated to be apartments or townhouses, mostly in Sydney."
"KPMG urban economist Terry Rawnsley, who did the analysis, said property developers are shelving projects because of soaring construction costs, rising interest rates and lacklustre property prices."
How does that work? Surely prices there are better than they have ever been, so why are they not worth building?
I think you answered your own question as to why houses are not worth building.
Thousands of builders have gone belly-up over the past couple of years
www.macrobusiness.com.au/2023/03/thousands-of-aussie-home-builders-collapse/
Combine that with soaring construction costs, rising interest rates and lacklustre property prices.
The last time this happened in Australia, we went into recession. Not that recession is a bad thing... It's sometimes necessary to clean up and reset the ecconomy.
Select to expand quotemyscreenname said..FormulaNova said..
Over on SMH they have a story at the moment about 16.400 homes being delayed because things are not good economically for the developers.
"Almost 16,400 dwellings in NSW were approved but not yet commenced at the end of March, analysis by KPMG shows, the highest number in over four years. Around three-quarters of the not-yet-commenced dwellings are slated to be apartments or townhouses, mostly in Sydney."
"KPMG urban economist Terry Rawnsley, who did the analysis, said property developers are shelving projects because of soaring construction costs, rising interest rates and lacklustre property prices."
How does that work? Surely prices there are better than they have ever been, so why are they not worth building?
I think you answered your own question as to why houses are not worth building.
Thousands of builders have gone belly-up over the past couple of years
www.macrobusiness.com.au/2023/03/thousands-of-aussie-home-builders-collapse/
Combine that with soaring construction costs, rising interest rates and lacklustre property prices.
The last time this happened in Australia, we went into recession. Not that recession is a bad thing... It's sometimes necessary to clean up and reset the ecconomy.
Does that mean we are heading into a situation where the government is overloading the number of people, yet it is not economic to build enough housing for them?
Someone somewhere will tell us that by bringing in 700,000 IT workers will somehow create more tradespeople to bring the price of labour down to enable us to build cheaper housing to house those 700k IT workers. (It may be other than IT workers, but I am a cynic... who else is easier to import and other industries seem to somehow protect their numbers)
House prices are not as good as they have been, but they are still good, so how do the prices now really impact that?
Which means that we have high interest rates being brought in to combat inflation which is itself leading to 23% of the inflation figure.
Select to expand quoteFormulaNova said..
House prices are not as good as they have been, but they are still good, so how do the prices now really impact that?
House prices or land prices?
