Another positive indicator emerges for housing industry
Published: 16 January 2012
The latest Housing Finance figures released today by the Australian Bureau of Statistics are a further indication of an emerging recovery for Queensland’s building and construction industry, according to Master Builders, Queensland’s peak body for housing and construction.
Master Builders Director of Housing Policy, Paul Bidwell said that although the number of finance commitments rose by only 0.9% in November (seasonally adjusted), finance commitments for the construction and purchase of new dwellings, which are a key indicator for building activity, rose by 22% (original figures), compared to a 12% rise for established dwellings.
“This significant upswing in finance for new homes is further good news for the building industry in Queensland, and comes on the back of last week’s announcement by the state government to extend the Building Boost Grant,” Mr Bidwell said.
“There is no doubt our industry is on the verge of a recovery; however, we must remember the results are still well below last year’s levels.
“For this reason, we believe the market will remain relatively flat with tough conditions for the building industry in the early part of 2012.
“However, providing the European economy remains stable and other economic conditions, such as employment and population growth, remain favourable, we are confident the worst is behind us and the recovery will begin to really take hold during the latter half of 2012.
“The importance of extending stimulus measures like the building boost and cutting interest rates cannot be underestimated, as the key to recovery is consumer confidence, and these measures go a long way towards improving levels of confidence.
“Given the industry is not yet back on its feet, we are urging the Reserve Bank of Australia to cut interest rates again when it meets in February.
“A third consecutive rate cut will go a long way to improving consumer confidence and further strengthening the building and construction industry’s recovery.”
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