Australian property body the Housing Industry Association (HIA) has warned that the country's residential building industry is facing a recessionary climate and urged the government to take corrective action.
Speaking at the National Policy Congress, HIA managing director Shane Goodwin asserted that conditions are worse than they have been for decades.
He added that the industry has faced eight years of contractions, warning that if conditions continue along the same lines a recession is inevitable.
"Governments must collectively arrest the looming crisis by increasing expenditure on infrastructure that supports new housing," suggested Mr Goodwin.
He pointed to the housing industry's vital importance to the overall economy as a reason why the government should expend efforts to stimulate it and encourage growth.
HIA's Victorian regional executive director Gil King recently suggested cutting red tape in the state would help boost property development and improve economic conditions, with planning permit applications currently taking an excessive amount of time.
Posted by Steve Douglas
