Leaders at Master Builders Australia (MBA) feel that interest rate cuts and government stimulus packages will be crucial to the future success of the property sector.
The Reserve Bank of Australia (RBA) trimmed interest rates by another 25 points earlier this month - taking the official cash rate down to a three-year low of 3.25 per cent.
This followed a series of reductions between November 2011 and June 2012, although the response from the Australian public has been somewhat muted thus far.
Figures from the Australian Bureau of Statistics have suggested that home loan uptake in August increased by a seasonally adjusted 0.4 per cent.
Chief executive officer at MBA Wilhelm Harnisch said the RBA must be willing to make further cuts in order to boost activity in the housing markets.
"The residential building industry is putting all its hopes on state government stimulus measures in New South Wales, Queensland and South Australia to boost activity in the forecast period," he added.
Posted by Craig Francis
DISCLAIMER: All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.
COPYRIGHT: All information provided is protected by international copyright laws. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network. Copying or storing any content is expressly prohibited without prior written permission of SMATS Group or the copyright holder identified in the individual content's copyright notice. For permission to use the content on please contact info@smats.net.