Master Builders Australia (MBA) is hoping that more strength will be given to the construction sector following the release of the Australian Bureau of Statistics (ABS) housing finance figures.
It claimed that consumers had become more keen to buy into the property sector following the Reserve Bank of Australia's (RBA's) decision to cut interest rates since 2011.
Yet the residential construction sector has not been as stable, with increases in building approvals being patchy over the last few months.
MBA hopes that the increased interest in the property sector will help to spur activity in construction, with its chief economist, Peter Jones, saying: "Residential building is at a low ebb and the industry hopes that RBA’s decision to cut interest rates in again May will give new home buyers the boost in confidence to enter the market."
Certain regional governments in Australia have also been trying to encourage more consumers to look to new builds when buying a house.
For example, in Victoria there has been more funding put into the First Home Buyer Grant for those looking to buy a new build for their first house at the expense of those buying established dwellings.
Posted by Ravin Chatlani
