At the Wood Preservation 2012 conference in Melbourne Andrew Harvey, Senior Economist HIA presented his economic opinions for the industry – though he was quick to point out that an economist’s opinions are always nebulous. Source: Timberbiz
According to Harvey, Australia’s economy is lethargic, the US economy is patchy but sustainable and China is going well and in a way supporting a lot of other Asian countries to weather the storm.
Greece is poised to either sink or at the very least tread water for a number of years to come. It may take Italy with it and then the whole European economy may flounder.
On home shores finance levels for new homes are faring acceptably with major home alternations and additions showing a good growth pattern but consumer confidence is volatile.
Building approvals in Australia are down to below 140,000 per year, which is indicative of a recession in that sector. Queensland’s market is the slowest in Australia with regards to housing.
Land sales are now half what they were in 2009 with many sellers now opting to sit on the investment rather than sell.
He said that the housing sector accounts for $4 billion worth of wood products but the use of timber in interiors was dropping.
As for the “world’s biggest carbon tax” Harvey says that the HIA position is that it is bad policy and will add 1.7 per cent to the cost of a new home where already 40 per cent of the purchase price is taxes.
