Housing Industry Needs A Boost: HIA

The global financial crisis (GFC) brought many challenges to the property industry, but comparatively speaking Australia has fared quite well next to other nations.

However, there is some concern that industry levels are not returning to normal at the rate they should be.

The Housing Industry Association fears housing market levels will actually dip below where they were during the GFC. The organisation has forecast an 11.5 per cent decline in home starts this year, following an 11.2 per cent fall in 2011.

"To improve the conditions facing new home building not only requires further interest rate cuts, but also Commonwealth and state government action to boost confidence and lift a substantial portion of the tax burden from new housing," HIA chief economist Harley Dale said on July 16.

HIA has also pointed out that renovations were also a concern, despite the forecast for a 1.3 per cent improvement to $29.3 billion in 2012-13.

"Three consecutive quarters of decline in renovations investment, at an accelerating pace, through to March this year is concerning. However, we are confident this situation will turnaround which is good news for the housing industry," added Harley Dale.

The impact of lowering interest rates in previous months also have yet to be seen in the home start data.