The number of new home sales recorded in April grew by just 0.2%, according to the latest figures from the Housing Industry Association.
The HIA’s figures found detached house sales increased by 0.4% with gains in New South Wales and Victoria, while sales fell in Queensland, South Australia and Western Australia. Multi-unit sales recorded a third consecutive decline by 2%.
HIA chief economist Harley Dale says the result is evidence of an industry suffering under red tape and supply constraints.
“The new home building industry is struggling under the weight of excessive taxation and regulation, a stalled housing supply reform process, and uncertainty over interest rates,” Dale said. “An industry kick-start is required together with a reinvigoration of the reform process.”
“Over 2011 to date new detached house sales are running at a volume 22% lower than the long-term average, while new multi-unit sales are down by over half.”
Dale says the results will only become worse if another interest rate rise is announced at next week’s Reserve Bank meeting.
Operating profits fell by a seasonally adjusted 2% in the March quarter, according to the latest figures from the Australian Bureau of Statistics, while wages and salaries increased by 1.4%.
Inventories increased by 0.4%, the figures show. Economists expected operating profits to fall 1.7%, with inventories expected to fall by 0.2%.
The figures come ahead of GDP statistics, which will be released on Thursday. The result is expected to show economic growth slowed in the March quarter due to the January natural disasters.
Treasurer Wayne Swan has warned the country’s growth could face a “dramatic hit”.
French Finance Minister Christine Lagarde is gaining support for the top job at the International Monetary Fund, with the country’s foreign minister Alain Juppe saying she has the backing of European leaders.
“Among the eight heads of state and government, plus the president of the European Commission and the president of the European Council who were there, there was unanimous support for Christine Lagarde,” Juppe said on French television, regarding the Group of Eight summit.
Lagarde has attacked criticisms that a 2008 legal battle involving entrepreneur Bernard Tapie could diminish her prospects for the job. Domestic critics say she abused her authority when a settlement was made.
The Australian sharemarket has opened flat this morning despite following a strong lead from Wall Street on Friday.
The benchmark S&P/ASX200 index was down 17 points or 0.38% to 4666 at 12.00 AEST, while the Australian dollar also opened flat at $US1.07.
AMP shares fell 0.58% to $5.18 while Commonwealth Bank shares lost 1.39% to $50.26. ANZ lost 0.95% to $21.78 as Westpac lost 1.49% to $21.82.
Woodside Petroleum chief executive Don Voelte has said major mining companies are increasingly becoming targets of cyber attacks, saying that the company has been hit “from everywhere”.
“Let’s not focus this on the Chinese: I saw the number of attacks against our company over a time period,” he told The Australian, in response to criticisms that many of these attacks originate from China.
“It comes from everywhere. It comes from Eastern Europe; it comes from Russia. Just don’t pick on the Chinese; it’s everywhere.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
