 Building industry shows confidence
Mark 2010 down as the year for a residential building recovery, as new data backs what industry figures have been saying for some time.
The release of preliminary figures by the Australian Bureau of Statistics (ABS) yesterday shows work done on new residential dwellings fell by 1.5% (seasonally adjusted) in the June 2009 quarter, however this was a smaller fall then expected, prompting fresh hope in the sector.
The Housing Industry Association believes that home building recovery would be very modest to begin with and a full recovery for construction work done would not happen until 2010.
HIA chief economist Harley Dale said that a real lift in construction would not be seen until 2010, although recovery in home building could come as early as late 2009.
"Low interest rates, the First Home Owner Boost, and Federal programs such as the Social Housing Initiative will all contribute to a much needed recovery in new home construction in 2009/10 following a five year trend decline," Dale said."It is clear, however that residential projects are getting bogged down in the approvals process - the rate of increase in building approvals in 2009 to date is lagging considerably behind the strong surge we have seen in new home lending", he added.
The ABA has released figures that show seasonally adjusted work done on new residential dwellings fell by 1.5% in the June 2009 quarter, and work done on detached houses fell by 2.7% over the June quarter.
The promise for residential building could be hampered however, if unemployment rises and interest rates rise as predicted.
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