The Australian property sector is forecast to witness a downturn in construction activity over the next two years, the Property Council of Australia reports.
According to the Australian Industry Group/Australian Constructors Association Outlook Survey, the total value of construction will continue to increase, but at a slower rate than is presently being witnessed.
The data forecast a 14 per cent rise in the value of the sector this year, followed by a 10.3 per cent increase next year and an eight per cent increase in the following 12 months.
It is expected that a slump in large-scale projects will be the main driving force behind the slowdown.
Earlier this month, Master Builders Australia chief executive Wilhelm Harnisch highlighted the latest fall in new home spending to take place in the country.
"The only bright spot in the September housing finance data was the increase in the number of first-home buyers," Mr Harnisch commented. "The figures reinforce widespread calls for further interest rate cuts and soon."
Posted by Steve Douglas
