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HIA reports Australian Home Building Recovery to Stall in 2011
06/29/2010

According to Housing Industry Association (HIA), a recovery in Australian home building is expected to stall in 2010.

HIA, which represents Australian Home Builders, said that 3 per cent is expected to fall in the housing market, contrary to the 20 per cent increase in 2010.

Based from the recent data, it shows that the building industry for new homes will continue to rate far below the demand. From the figures stated in its quarterly National Outlook Report, the HIA said that Australia is required to build more than 190, 000 homes in 2010 alone just to reach the basic demands. Currently, there are roughly 165, 940 houses built.

According to the chief economist at HIA, Harley Dale, said that over the next 10 years, Australia would have to build 420,000 homes more than what were built over the last decade.

He also added that a failure to build adequate homes is putting the rental markets on high pressure making it hard for Australians to buy their own dream home.

HIA expects there will be a 7 percent increase on the total worth of the renovations sector. In each of the subsequent two years, 4 percent is expected to rise, taking renovations activity to a worth of $36.4 billion in 2011-12.

Source: The Australian News