The construction sector in Australia says that consumers should have fewer constraints on their finances if support is to flow through to the new build sector.
According to the Housing Industry Association (HIA), new home building and large renovation jobs are being stopped from going ahead due to tighter credit conditions for residential development.
Indeed, the number of approved new buildings has been falling overall across a number of months. The exception to this was during February, when the Australian Bureau of Statistics (ABS) reported new build approvals had risen by 3.1 per cent.
Nevertheless, the building of private housing has been the best performing sector of the construction industry. In March, ABS reported a 0.1 per cent rise in approvals and this has been rising for 14 months.
Additionally, it has been getting easier for consumers to finance their homes following the Reserve Bank of Australia's decision to cut its benchmark interest rate. With the rate set at 2.75 per cent currently, it has caused a fall in the amount of interest paid on mortgages.
Posted by Craig Francis