Sydney Morning Herald: The outlook for the residential construction market may be worse
Sydney Today, April 4, Australian Eastern Time, a housing agency predicted that if building permits remain at the current level, the number of newly built houses will drop to the level of the 4 financial crisis.
Earlier this week, the Australian Bureau of Statistics reported that building permits in February fell by 2%, the lowest in three years. Some other market signals are also uncertain. RP data reports that national house prices have been relatively stable this year. For example, Sydney house prices have risen while Melbourne has fallen. As Australians saw Europeans nearly collapsed due to the debts repaid by mortgages, and began to cut back on food and clothing, builders also suffered.
Concerns about the prospects of the housing market prompted HIA to call on the government to cut interest rates and adjust policies. It pointed out that the current real estate market supply is insufficient to meet the needs of the population and the continued decline in the number of newly built houses indicate that the current housing market policy is unreasonable. Everyone should have a full understanding of this. Only in this way can we avoid the destructive economic and social impact caused by this as much as possible.
But some other industry experts believe that further lower interest rates will not alleviate the housing predicament. Fujitsu Australia’s chief executive Martin North said last week: “Years of excessive speculation in lending activities will reduce consumer confidence, house prices and market activity in the long term. Past attempts to stimulate the market have not had a positive impact in the long term.” (Wendy)
English version: http://smh.domain.com.au/real-estate-news/hia-worse-to-come-on-home-building-front-20120404-1wc75.html