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Housing commitments hit year-low

Thursday, May 13th, 2010

Housing commitments hit year-low 

Wednesday, 12 May 2010 

 Housing finance commitments have slumped to 12-month low, suggesting owner occupier borrowers are starting to feel the impact of rising rates.

According to the Australian Bureau of Statistics (ABS), the total value of owner occupied housing commitments dropped from $16.657 billion in March 2009 to $13.534 billion in March 2010.

The fall signals the lowest value of total owner occupier home loan commitments since November 2008, when the figure was $13.063 billion.

Over the month, the number and value of commitments for owner occupied housing finance also fell by 3.4 per cent.

Previously strong property markets such as the Northern Territory, Western Australia and South Australia posted the highest falls in March at 12.1 per cent, 6.8 per cent, and 5.6 per cent respectively.

REIA president David Airey said the nation’s owner occupied housing committments were down to the levels recorded at the beginning of the global financial crisis.

“Each month it looks more and more like first home buyers are a dying breed,” Mr Airey said.

Meanwhile, Housing Industry of Australia (HIA) chief economist  Dr Harley Dale said the downward trend in new home lending may have a flow-on effect to developers, constraining the housing construction sector.

“We have a debilitating confluence of higher interest rates, tight credit availability, and obstacles related to land supply, planning, and infrastructure charges and taxation,” Dr Dale said.

“These forces are standing in the way of a sustainable lift in new construction in 2011,” he said.

On the flipside, however, ABS figures showed that the total value in investment finance commitments rose by 3 per cent to $6.644 billion in March 2010.

Mortgage Choice spokesperson Kristy Sheppard said despite the rise in investment finance commitments, the market is definitely feeling the overall effect of higher interest rates.

“We really need to see more competition in the mortgage market, the Reserve Bank keeping the cash rate steady for the time being and Australia’s housing undersupply problem addressed, which really hasn’t happened yet,” Ms Sheppard said.

Support for tougher rules on green housing

Monday, August 11th, 2008

People who recently built, or are planning to build, a home, support greener home rules, a Government-commissioned report has found.

The report, obtained by The Sunday Age under freedom-of-information laws, found that the State Government could improve the energy-rating scheme for new homes from five stars to six “immediately and with no major problems” and seven stars was “attainable in the medium term”.

Spring Street is reviewing the five-star system, which makes it compulsory for new homes to have either a solar hot-water system or a rainwater tank. Houses are also required to have more energy-efficient building materials, restricted water pressure and reduced flow rates for shower heads and taps.

Victoria’s system was an Australian-first, but international comparisons have since found that for a climate like Melbourne’s, 7.5 stars is the average mandated minimum in developed nations.

The Sunday Age believes that the Government is considering scrapping the choice between the rain tank and solar hot water and will instead focus on setting water, energy and stormwater targets and additional requirements for lighting, heating and cooling. The Government is facing stiff opposition from the building industry, which opposes more regulation on new homes. The Master Builders Association argues that more “stars” reduce housing affordability and existing houses should instead face energy-efficiency standards.

But the report — the only one of seven climate change policy documents the Brumby Government has not released publicly — contradicts the argument that home builders are unwilling to pay extra upfront costs.

The report’s author, Wallis Consulting Group, conducted four focus groups with different home builders: some from the inner city, others from new suburbs, some who individually designed their homes, others who brought “off the plan”.

Most of the home builders interviewed wanted the Government to be more “strict” with energy regulations and were happy with six stars.

Six stars was explained as better insulation and orientation of the house on the block. The groups were told this would add 1-2% to building costs but reduce demand for heating and cooling by 24%.

The focus groups also backed seven stars — which includes even better insulation, ensuring no large unprotected windows faced east or west, and eaves on windows — but there was some resistance, particularly from those who felt it may be difficult to change the way a house sat on a small block, and from those who did not want to modify windows. It was explained the seven stars would add 2-6% to building costs but reduce demand for heating and cooling by 45%.

Eight stars, which included a high standard of insulation, careful design and orientation would, the focus groups were told, add 4-12% to the cost of a house but reduce heating and cooling needs by 65%.

This was supported only in greenfields developments such as housing estates. “This rating would act as a deterrent to most to build and the cost implications are seen to be large,” the report found.

But the authors did find universal support for the progressive tightening of regulations over time.

The report also found that people have a “very poor and confused” knowledge of green energy and there was little appetite for regulation of lighting.

Author: Melissa Fyfe

Weekly Greenhouse Gas Indicator

Monday, May 26th, 2008

Victoria’s emissions from energy were 4% or 77,000 tonnes higher this week, reaching the highest level so far this year Emissions from gas were 23% or 77,000 tonnes higher this week, the highest weekly level this year. This was as a result of a significant increase in the use of gas for heating due to the colder weather as well as a 24% increase in gas-fired generation Emissions from coal-fired generators were 1.2% or 13,000 tonnes higher this week Emissions from petroleum products reduced by 2.4% or 14,000 tonnes This week’s Indicator is 5% higher than the same week in 2007 and total emissions to this stage of 2008 are 0.9% higher than the similar stage last year. This week’s Indicator is 34% above the equivalent 1990 weekly average.

Weekly Greenhouse Gas Indicator

Thursday, May 15th, 2008

Victoria’s energy emissions were 2% or 34,000 tonnes lower this week. Emissions from coal-fired electricity reduced by 0.4% or 5,000 tonnes. Electricity generation was 0.5% lower with reduced generation from coal and hydro generators offset by an 8% increase in gas-fired generation. Electricity demand was 1% lower which resulted in reduced imports from Queensland and South Australia. Emissions from gas were 12.6% or 49,000 tonnes lower this week principally as a result of reduced use of gas for heating due to the milder weather Emissions from petroleum products increased by 3.4% or 19,000 tonnes This week’s Indicator is 2.2% higher than the same week in 2007 and total emissions to this stage of 2008 are 0.5% higher than the similar stage last year. This week’s Indicator is 29% above the equivalent 1990 weekly average.

Weekly Greenhouse Gas Indicator

Monday, May 5th, 2008

 

Victoria’s emissions from energy increased by 7% this week the largest weekly increase so far this year Emissions from coal-fired generators reduced by 1% due to a number of generation units not operating Electricity demand increased by 6% which was met by a 56% increase in gas-fired generation and imports of electricity from Queensland and South Australia Emissions from gas increased by 46% this week as a result of increased use of gas for heating due to the colder weather and increased use of gas for electricity generation Emissions this week are 31% higher than the average weekly energy emissions in 1990


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