The Housing Industry Association (HIA) has called on the government to stimulate the Australian property market and the building of new Australian homes with a concerted policy, rather than focusing solely on rate cuts.
The 19 December statement from the residential building industry organisation came as it released its housing report card, which forecasts a 10.4 per cent decline in new housing starts in 2011-12. This would bring the number of new homes built in the period to a level of just over 141,000.
HIA chief economist Harvey Dale emphasised that although the continuing debt crisis in Europe could force further rate cuts in Australia in the coming year, these should not be seen as the only way to encourage growth.
He suggested the Australian government produce "an over-arching, renewed focus on structural reform to reduce the disproportionately high, inefficient and inequitable cost of new housing".
Earlier in the month, Mr Dale's colleague Andrew Harvey argued a short-term boost was necessary to kick-start new home building.
Posted by Steve Douglas
