Australian housing market remains soft

Australian housing market remains soft

James Hardie Chief Executive Louis Gries has presented a gloomy outlook for the Australian building industry, warning that weakness will last through this year and create challenges similar to those faced during the worst years of the housing downturn in the US.

"If the market is as soft as most people think in Australia, it is going to be a big challenge," the chief executive said while delivering the company's full-year results in Sydney this week. Despite the Reserve Bank of Australia's recent interest rate cuts, market forecasters expect residential construction activity to continue to contract in the next 12 months, he said.

This same outlook for building starts was outlined at this week’s Wood Preservation 2012 event in Melbourne where Andrew Harvey, HIA Senior Economist Housing said that housing starts are expected to improve slightly in 2012, before a more robust recovery in 2013. On the bright side, renovations activity is expected to remain healthy with modest growth expected in upcoming years.

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