Australian property body the Housing Industry Association (HIA) has urged the government to take action to boost the property market through reforms and interest rate cuts.
HIA managing director Shane Goodwin said the residential building sector is a key indicator of the macroeconomic health of Australia as a whole, with increasing evidence that conditions will continue to worsen after a disappointing 2011.
"Reducing the cost base of new housing, increasing housing supply and boosting affordability are not only laudable policy aims, they are essential to a more productive Australian economy," added Mr Goodwin.
He added that more job losses and small business closures can be expected without government action to give the sector a fillip.
Mr Goodwin suggested a number of measures the government could put in place to boost the economy, including encouraging regional states to cut stamp duty.
Australians for Affordable Housing recently encouraged the Queensland government to act on housing shortages in the state.
Posted by Steve Douglas
