Op­ti­mistic out­look

The Riverine Herald - Local Real Estate - - LOCALREALESTATE.COM.AU -

The lat­est Mas­ter Builders Busi­ness sen­ti­ment sur­vey of res­i­den­tial builders has re­vealed a cau­tiously op­ti­mistic out­look de­spite un­cer­tain eco­nomic cir­cum­stances. Of those who re­sponded, about 44 per cent said they saw their busi­ness ac­tiv­ity grow­ing marginally over the next 12 months. An­other 23 per cent said they ex­pected busi­ness ac­tiv­ity to re­main the same. Only 20 per cent ex­pected a de­te­ri­o­ra­tion. ‘‘These re­sults show that our res­i­den­tial mem­bers are pos­i­tive about the year ahead, de­spite a tur­bu­lent eco­nomic land­scape,’’ ex­ec­u­tive di­rec­tor Brian Welch said. This pos­i­tive out­look is all the more re­mark­able given the low prof­itabil­ity ex­pec­ta­tions in the three months to Novem­ber, with 29 per cent say­ing their prof­itabil­ity im­proved marginally, 48 per cent say­ing it had re­mained the same and 12 per cent say­ing it had ac­tu­ally de­te­ri­o­rated marginally. About 38 per cent said their cur­rent level of busi­ness ac­tiv­ity was ‘medium’ with 28 per cent reporting it was ‘high’. A fur­ther 27 per cent re­ported their cur­rent level of busi­ness ac­tiv­ity as low to very low. ‘‘Our res­i­den­tial builders are not let­ting the soft­en­ing mar­ket con­di­tions im­pact on their out­look for the year ahead,’’ Mr Welch said. ‘‘The months ahead will be chal­leng­ing with work on the books look­ing patchy. ‘‘About 27 per cent told us they have only one to three months worth of work lined up, about 30 per cent have up to six months worth of work and, wor­ry­ingly, 19 per cent say they have less than a month worth of work.’’ Mr Welch said the next 12 months would be crit­i­cal to the health of the res­i­den­tial build­ing in­dus­try and the over­all econ­omy. ‘‘It will be in­ter­est­ing to see how things pan out and to see how the in­dus­try copes with in­creased reg­u­la­tions in­clud­ing the bush­fire man­age­ment over­lays and the car­bon tax,’’ he said. ‘‘We hope the pos­i­tive out­look of our mem­bers is vin­di­cated in the New Year.’’

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