Housing prices on the rebound
Tuesday March 31, 2009
A third of the federal government's $6 billion spend on public housing should go to the private residential construction sector, the opposition says.
Data released on Tuesday showing a rebound in house prices is another sign that the more generous first-home owner scheme should be extended beyond June, housing spokesman Scott Morrison says.
The government, as part of its first stimulus package last year, temporarily doubled the grant available to first home buyers of existing homes to $14,000 and tripled it to $21,000 for buyers of newly-constructed homes.
It is leaving any decision to extend the stimulus measure to the May budget.
Improved property values, together with rising house sales and easing mortgage stress, pointed to the private housing construction sector as a key to stimulating economic activity, Mr Morrison said.
'At least $2 billion should be diverted from Labor's over-ambitious program to spend $6 billion on public (housing),' Mr Morrison said.
Instead it should be diverted to the private sector through the first-home owner grant scheme, he said.
Mr Morrison said it was 'fanciful' that states and territories could spend $6 billion on public housing in less than two years.
'Last time it took more than eight years to achieve that result,' he said.
Sky News
