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The Housing Industry Association latest National Outlook report forecasts that construction of new homes Down Under in 2014 will climb to the second highest level on record, while renovations activity will begin recovering from a ten year low.
“Residential construction investment will make strong contributions to Australia’s economic growth this year and next, and will boost demand across significant parts of the manufacturing, retail and supply/distribution sectors,” predicts HIA Chief Economist, Dr Harley Dale.
New dwelling commencements are forecast to increase by 7.1 per cent in 2014, following growth of 10.9 per cent in 2013, reaching a peak of 180,000. Commencements are forecast to decline in 2015 and 2016 to a level just under 170,000.
“Residential construction is making a vital contribution to the rebalancing of growth in the nation’s economy,” he adds..
“The challenge for policy makers is to look beyond the cyclical recovery and address the large and highly inefficient tax and regulatory barriers afflicting Australia’s new home building sector.”