Some sectors are exiting the recession at quite a pace, but the construction industry, when it comes to building new residential property in Australia, is merely remaining stable.
This is according to Andrew Harvey, senior economist at the Housing Industry Association, who said that the mining sector is soon to "take off like an Aston Martin DB9" but that the residential building industry is "stuck in neutral".
"The federal government needs to examine how it might achieve a more balanced growth profile across various sectors," he added.
Mr Harvey went on to say that this is particularly important in the face of tightening monetary policy.
His comments follow the publication of figures by the Australian Bureau of Statistics which show that the number of loans for the construction or purchase of new homes fell by 0.7 per cent in September 2010.
Earlier this week, David Airey, president of the Real Estate Institute of Australia, suggested that the Australian property market would experience more growth if interest rates were put on hold.
Posted by Ravin Chatlani
