Economic Overview While forecasting indicators for newresidential building activity began tofrom regulators. Unlike most otherdownturns in the industry’s history ease during 2017, the substantial there were no interest rate rises, and no pipeline of work under construction recession or financial disaster saw the industry make a significant precipitating the easing in the new contribution to Australia’s economic activity. Targeted, yet ad–hoc, and employment conditions. intervention from governments and However, continuing growth in house regulators was the catalyst for easing prices, particularly in Sydney and conditions. Unfortunately, its impact was Melbourne, dominated media attention. felt in the slower markets of South Leading articles on housing affordability, Australia, Western Australia and regional foreign investors and first homes Queensland, as well as the more dynamic buyers, and shifting public sentiment on markets of Sydney and Melbourne. The the housing challenges facing young measures impacted multi–unit projects Australians, drew stronger responses more than detached housing. Economic Research Debate around residential investors competing with owner occupiers and ongoing government policy interventions in the finance market provided the backdrop to much of HIA’s research during the year. HIA HIA provided considered and well– grounded research into these issues, adding objectivity to the often emotionally-crafted media coverage of the causes of and solutions to, our housing affordability challenges. Much of this research was focused on demonstrating the negative impact of constraints on housing supply and the March 2017 need to avoid knee–jerk responses to HIA RENOVATIONS ROUNDUP P1 issues of demand, especially investor SPRING 2015 and foreign demand. HIA’s research experience over the commissioned new independent course of many cycles in residential research into the impacts of mooted building provided additional credibility changes to capital gains tax and also to the research conducted during into the emerging issue of value capture 2017. In addition to its substantial mechanisms to fund much needed ongoing economic analysis, HIA also urban infrastructure. HIA ANNUAL REPORT 2017 5|