Australian property building in the Northern Territory is likely to decrease this financial year because of the expenses involved in generating new homes, according to the Housing Industry Association (HIA).
The HIA's Northern Territory Outlook reports that despite a three per cent jump in new housing starts this year bringing the number of properties up to 1,290, a slump of 18 per cent is expected in the 2011-2012 period.
It anticipates solid growth of 35 per cent in 2012-13, taking new home starts to 1,430.
Robert Harding, HIA regional executive director for the Northern Territory, said these statistics made it clear that something should be done to accelerate housing supply.
"We have to look at ways to reduce excessive costs on new homes and that includes the Northern Territory government thinking about how to remove stamp duty on new homes," added Mr Harding.
A recent report from the Centre for Independent Studies described stamp duty in Australia as unfair, inefficient and a major factor in driving up property prices.
Posted by Steve Douglas
