Australian Property News

Builder sentiment drops

Posted on Wednesday, September 29 2010 at 12:30 PM

Builder sentiment dropped in the September quarter in line with declining expectations for building industry activity, according to Master Builders Australia and its latest National Survey of Building and Construction.

Master Builders Australia chief economist Peter Jones says there are increasing concerns among builders about the future outlook as government stimulus programs begin to wind down.

Jones notes that financial constraints remain an issue for both commercial and residential builders.

Although down from recent highs, nearly one quarter of survey respondents remain concerned that availability of finance is having a large or constraining effect on their business.

Builders also report that interest rates – which they expect to keep rising over the next year – are impacting on forward orders.

“Based on the survey results, Master Builders urges the Reserve Bank to keep interest rates on hold until a private sector recovery in the building industry can regain momentum,” says Jones.