Rental Auctions on the Way: HIA-Rental Auctions Comes to Stay

ismal condition of the housing sector does not seem tooutlook report for the June quarter has projected that
have any hope of reviving in the near future. There isproject of new housing will be below the thirty
almost a six percent drop in the new housing projects.thousand mark.
The constructions of new homes have come to anThe activity in new housing projects is almost at a
almost stand still phase and one will see people biddingstand still. For the past six year this new housing
at auctions to rent a house.industry has failed to recover according to Graham
There has been steady increase in the populationWolfe, who is an executive director at the Housing
growth of the country. To house this growingIndustry Association.
population enough accommodation is required. It is notIn a time when there is a great demand for new
just the growing population; there is also a larger scalehouses construction in this sector is lagging far behind.
migration to many parts of the country due to betterThis has in turn created a situation of a great pressure
resource development which has in turn given rise toon the rental market. The demand on the rental has
new job opportunities.led a spiral increase in the rent of houses. The high
This has created a major shortage of houses almostdemand has made the rent much tighter.
to the tune of forty five thousand. The drop of sixIn Queensland there will a shortage of almost twenty
percent in new housing is a big figure. The housepercent this year in the new housing sector. No new
affordability has touched a dangerous level accordingconstructions are being done. According to the outlook
to Chris Lamont of The Housing Industry Associationreport for the June quarter, there will be a shortage of
(HIA).almost eleven thousand homes this financial year all
The present scenario is such that when there is anacross the state.
affordable housing estate with two or three house onIt is not easy for the market to recover from such a
rent one can see that there are almost twenty five toslump. It will take much time for it to recover says
thirty people queued up outside the place. This thenWarwick Temby, executive director of the
becomes a bidding war for the house among theseQueensland branch of the Housing Industry
people.Association. May be things will improve from the
The highest bid decides the rate of the property. Manysecond quarter of 2009. That is if there is some
a times this rate is not affordable by the person whointerest rate fall. The fall in the rate of the interest rate
has bid the rate. He makes the bid as he might be incan create a marginally increase in the activity in the
desperate need for the housing.housing sector. She says that the population growth in
In New South Wales the Housing Industry AssociationQueensland will be a major factor for rise in housing
has forecast a shortage of almost eighteen thousandactivity in the state as they all need place to stay and
homes this fiscal year. There seems to be no activitythe houses are in short supply.
in the new housing sector. The New South Wales