Simple and Sustainable Forums: savagegoose - Viewing Profile - Simple and Sustainable Forums

Building products maker CSR expects Australia's housing construction industry to remain in the doldrums for the foreseeable future.

The company estimates about 140,000 houses will be constructed in Australia in the 12 months to March 2013, down from 148,300 in the year to March 2012.

"Excluding the global financial crisis and the introduction of the GST, this represents the lowest level of housing activity in the past 15 years," CSR said in a statement on Wednesday.

The company posted a $76.3 million profit for the year to March 31, 2012, down 85 per cent from $503.4 million the previous yea

House prices in the booming Pilbara region are continuing to outpace major capital cities, with recent sales fetching $300,000 more than the Sydney median.

Sixty properties in the iron ore hubs of Port Hedland and Newman sold for an average of $800,000 per property in the March quarter, Crawford Realty agents said.

The company said the average time for selling a property in the two mining towns was 14 days compared to almost 80 days in Perth.


The decision by BHP to commence work on the $1 billion outer harbour in Port Hedland combined with construction contracts now being awarded for the $7 billion Roy Hill mine in Newman are driving demand for properties in these areas, the company said.

With potential rental returns of between 11 to 15 per cent, buyers from the eastern seaboard were leading the charge, Crawford said.

The latest RP Data-Rismark Home Value Index showed Sydney remained the most expensive capital with a median house price of $485,000, while Hobart was the cheapest with a median price of $328,000.