HIA asks for policy changes to boost housing sector
The global financial crisis has brought many challenges to the economy, but Australia has been spared the worst of this economic downturn and is performing quite well.
Proceeds from the mining and resources sector is spurring industrial property investment and commercial expansion.
Additionally, the Australian dollar is holding strong - trading above parity to the US dollar for quite some time now.
However, there are concerns that without swift action, the country's current strength may not protect certain industries from a rising tide of difficulties.
The Housing Industry Association (HIA) has suggested that lower interest rates and supply-side reforms are necessary to support and encourage residential construction activity.
"Housing is shelter, a necessity of life. Reducing the cost base of new housing, increasing housing supply, and boosting affordability are not only laudable policy aims, they are essential to a more productive Australian economy," said HIA managing director, Shane Goodwin.
Although construction declined in the December quarter, housing affordability has increased and interest rates are lower than this time last year.
Australians looking to invest in residential or commercial property may wish to take advantage of the current low construction prices and consider building instead of buying.