According to The Australian Financial Review, the sharp contraction in new home building during the past year is finally coming to an end, but the threat of the coronavirus outbreak could hit housing demand by next year if the travel restrictions drag on and weaken the economy further, the Housing Industry Association says.
HIA chief economist Tim Reardon said that while the travel ban had had no immediate and direct impact on the building industry, it could weaken household spending due to a potential rise in unemployment.
"Depending on the length and depth of those restrictions, it may impact the housing market in 2021 in terms of demand."
"There are domestic suppliers of building components and at this stage, the volume of building components is not affecting building. Of course, if the restrictions are long-standing, it may require suppliers to seek alternative sources of building products."
However, some building contractors have warned clients of potential delays on projects because factories have closed in China, the source of many building materials used in Australian projects, as a result of the respiratory disease.
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