Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Housing recovery in sight



Download PDFDownload PDF

news release news release news release

MINISTER FOR

SCIENCE and TECHNOLOGY THE HON. SIMON CREAN

Oa, AUSTRALIA

l l

IMMEDIATE RELEASE: MONDAY'20 MAY 1991 50/91

HOUSING RECOVERY IN SIGHT

Dwelling commencements are set to recover in the first half of 1991-92, according to the Indicative Planning Council for the Housing Industry (IPC) in its April 1991 Short-term Prospects Report. ■

The Minister for Science and Technology, Mr Simon Crean, who is the Federal Minister responsible for the housing industry, released the report today.

The report provides an assessment of the current level of, and short-term prospects for, housing, activity at both the national and State/Territory levels.

The IPC, under the chairmanship of Mr Brian Hamley, is the Federal Government's principal advisory body on the housing " industry.

Commenting on the forecasts, Mr Crean said the housing

industry had been flat for some time and the preconditions for a turnaround were in place. ’ "

. ■ . · . · ‘ · . . . / 2 · · ’

• COVh, ON WEALTH 1

P A R L iA M ir-I; ARY LIBRARY MCAH

MINISTRY OF INDUSTRY, TECHNOLOGY AND COMMERCE

news release news release news release

r sjl

- 2 -

He said these included lower mortage interest rates, lower real house prices and a substantial build-up in underlying demand for housing . · Last week's CPI outcome resulted in major- financial institutions reducing their mortage rates by up to a

further one percentage point, to 13 per cent.

The Minister added, however, that potential homebuyers were still cautious about employment prospects. Some improvement in the outlook for employment was needed before a sustained housing recovery could occur.

According to the report, dwelling commencements are expected to total 120,000 in 1990-91, a 13 per cent decline compared with the previous year.

For 1991-92, commencements are forecast to increase by 13 per • cent to 135,000. A gradual increase in commencement levels is expected to begin in the September quarter 1991.

The report noted that there was little or no pressure on . resources due to the downturn in the industry. There was . ongoing concern, however, that any significant increase in demand could result in serious land shortages in a number of

capital cities.

CANBERRA Contact:

" Minister's Office

■ Carlos Gonzales

• (06) 277 7280

DITAC Wilhelm Harnisch

· ' . · ■ ; (06) 276 2331 (W)

. . . · . (06) 288 0370 (H)