Renovations to cushion slowdown
The Housing Industry Association says that despite an easing in the number of loans for new dwellings, the building industry remains on track for a soft landing.
This is because the downturn in new dwelling starts will be partially offset by an upsurge in renovations. Figures from the Australian Bureau of Statistics show loans for additions and additions are growing, with $448m being lent for this purpose in December, the third highest level on record.
“With interest rates low and a freeing up of building trades by mid year, the capacity of the home renovation industry will improve, offsetting some of the slowing in new home building,” says Simon Tennant, the HIA’s chief economist.
Source: Building Products News.
17-Feb-2003