HIA head bullish on housing in 2002
Despite growing concerns over Australia’s economic strength into 2002, the managing director of the Housing Industry Association remains confident about the future for the industry into the new year.
Commenting on the marginal rise in home building approvals in October, Dr Ron Silberberg says the figures show the fundamentals of the building industry remain strong. “First home buyers are a very important part of the market and recent figures on the number of new home grants issued confirm that many are taking advantage of some of the best buying conditions on record,” he says. Silberberg notes that even if first home buyer activity was to halve in 2002, this sector accounts for only 20 percent of the total market and the effect on total industry would not be enough to create another housing recession.
“Interest rates are at 30 year lows and are expected to fall further, consumer confidence is recovering and new house prices are stable,” he says. “Even with the reduction in the new home grant to $10,000, demand from the remaining 80 percent of the market should see housing starts reach 140,000 for the year.”
A total of 15,294 dwellings were approved in October, up 1.8 percent on the previous month and 56 percent higher than 12 months earlier.
Source: Building Products News.
8-Feb-2002