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‘The building industry’s slowing down’: Brickworks MD warns

Experts warn the Australian building industry could experience a further downturn in the coming months while property prices continue to fall. 

The downturn in the housing market has led to a lack of construction deals around the country.

Brickworks Managing Director Lindsay Partridge tells Ross Greenwood construction will worsen towards the middle of the year.

“The building industry’s slowing down so it’s impossible to recover your costs and you’ve just got to wear them straight off your bottom line.

“If things keep going the way they are I can just see the day where I’m going to go to my board and say ‘look I don’t think we should invest any more in Australia.'”

“Investors haven’t returned to the market because they’re concerned about what’s going to happen at the election.”

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SQM Research Managing Director Louis Christopher tells Ross Greenwood Labor’s negative gearing policy needs to be phased in otherwise “it will create problems.”

“Housing construction would fall even above the existing falls we’ve had.

“That would have a wider impact on the economy at a time that the economy is patchy.

“Due to the fall in housing construction it is likely, at a later point, we are going to see an acceleration in rent.”

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