Scarce credit affects dwelling developments

Risk-averse banks and lenders demanding higher pre-commitment sales in order to provide finance are causing the housing industry to suffer.

According to housing industry analysts, work on new high rise apartment projects has collapsed since the start of the year as developers struggle to secure loans.

The Housing Industry Association (HIA) expects official data, released later today, to show there has been a drop in housing starts.

HIA chief economist Harley Dale predicts a 17 per cent drop in housing starts over the last financial year, a 13 per cent drop in work on stand-alone homes and a 26 per cent drop in high and medium density projects.

Risk-averse banks and lenders demanding higher pre-commitment sales in order to provide finance are causing the housing industry to suffer.

According to housing industry analysts, work on new high rise apartment projects has collapsed since the start of the year as developers struggle to secure loans.

The Housing Industry Association (HIA) expects official data, released later today, to show there has been a drop in housing starts.

HIA chief economist Harley Dale predicts a 17 per cent drop in housing starts over the last financial year, a 13 per cent drop in work on stand-alone homes and a 26 per cent drop in high and medium density projects.

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