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  Lending for the purchase or construction of new homes remained flat in the first quarter of 2025, likely the result of election uncertainty, according to the Housing Industry Association. Source: Timberbiz And HIA Senior Economist Tom Devitt believes the data also reflected the situation prior to the effect of the RBA’s first interest rate cut. The ABS released the Lending Indicators data for the March quarter 2025 this week, which provides the latest statistics on housing finance commitments. “There were 91,790 loans issued in the 12 months to March 2025 for the purchase or construction of new housing across Australia, 8.5% greater than the previous year,” Mr Devitt said. “Investors have been leading the improvement in new home lending activity, with a 14.1% increase in loans over the last 12 months, compared to a 4.9% increase in owner occupier loans. “It is typical following a trough in housing activity that investors return to the market be-fore confidence spreads to owner occupiers and confidence is returning,” he said. Ongoing strong population growth, low unemployment rates and recovering household incomes had seen an increasing number of Australians return to the market. Mr Devitt said the home improvement trend also looked to be making a comeback, with the number of loans for renovations up by 3.9% on the same quarter last year, and over one-third greater than the levels in 2019. “Elections can easily create consumer uncertainty around major spending decisions like new home purchases, especially elections where housing policy is front and centre,” he said. “With the election behind us and the RBA expected to deliver this cycle’s second interest rate cut next week, more Australians are likely to return to the market and sign that contract for a new home build. “The outlook for renovations activity continues to be supported by a number of positive fundamentals, including ageing dwelling stock, the ongoing desire for home improvement, repairs from extreme weather events, and affordability issues in the new housing market.” Mr Devitt said the strength of the coming home building cycle would depend on the ability of each state and territory to prepare a pipeline of affordable shovel-ready land to meeting housing needs. “If the Albanese government wants to achieve its target of 1.2 million new homes over five years, significant reforms are required,” he said. “A few interest rate cuts won’t produce the kind of home building volumes that Australia needs.” The Northern Territory has been leading the improvement in lending for new homes, up by 50.6% compared to the previous year, followed by South Australia (+22.0%), Western Australia (+20.1%), Queensland (+15.0%), the Australian Capital Territory (+6.2%), New South Wales (+2.9%) and Victoria (+0.9%). Tasmania saw the only decline, down by 2.7%.

Forestry Corporation is again organising its annual delivery of koala food tree seedlings to support Koala Conservation Australia’s community koala tree giveaway, aimed at improving habitat on the Mid North Coast. Source: Timberbiz Tree seedlings grown at Forestry Corporation’s Grafton nursery have recently been delivered for the Koala Hospital’s annual koala food tree giveaway. The delivery comes as the KCA announced this week the first joey births at the Guulabaa – Place of Koala breeding facility. They will be the first koalas released into local forests. “A huge thank you again to Forestry for donating these much-needed trees,” Koala Conservation Australia spokesperson Scott Castle said. “The annual tree giveaway engages the wider community in planting koala food trees and goes some way to regenerating and connecting existing habitats,” he said. Private or public land holders with some open space for tree plantings can order trees on the KCA website, then collect their trees at Guulabaa, Place of Koala in Cowarra State Forest between 10am and 2pm, Monday to Saturday. Recipients will be asked to provide their details and the planting location, so in the future, KCA can contact them if they need to harvest food for koalas in its care. The seedlings include Tallowwood, Forest red gum, Swamp mahogany, Grey Gum ad Grey Box. Forestry Corporation Partnership Leader Leah Moncrieff, who organised the tree giveaway, said 25,000 seedlings would be donated this year. “These donations bring the total to 150,000 trees donated over the years,” Ms Moncrieff said. “These trees support local planting projects to provide sustenance for koala populations, improve connectivity between areas, afford future food and habitat and improve environmental value. “This joint enterprise between the Koala Conservation Australia and Forestry Corporation supports our wonderful ongoing partnership and long-standing collaboration, which includes the establishment of a Wild Koala Breeding Centre within Cowarra State Forest. “This program also allows the community to become involved and contribute to the health and wellbeing of koalas, supporting local wildlife and the environment. “Forestry Corporation is passionate about koalas and are very excited to support KCAs efforts by providing tree seedlings. We also offer easy-to-follow planting information and resources, which is available from the Tree Giveaway webpage and on site when you pick up seedlings. “These resources will assist in selecting the right species for the right location, when and how to plant, how to alleviate ongoing risks and maintaining the seedlings until they become established ensuring success,” she said.  

A journal article published in April highlights Scion’s work to improve propagation and increase the production of indigenous species in nurseries. Source: Timberbiz The article showcases a New Zealand-first study that investigated the impact of container grade size on the survival and field performance of 12 key native species to better understand the link between containers and post-planting seedling survival and growth performance. The study saw Scion raise seedlings from the 12 native species in different container sizes and testing how they performed in good or poor-quality sites. Scion col-aborated with Te Uru Rākau – New Zealand Forest Service, Minginui Nursery, CNI Iwi land Management, the Tumunui Land Trust, Timberlands, Rotorua Lakes Council and the Tipu Waiariki Charitable Trust (Tipu Wai), which provided the sites and helped with preparation and planting. Industry-standard pots were compared with other, smaller containers such as 7cm and 8cm paper Ellepots and forestry-grade pots. The effect of differences in length of time, type of container and tree spacing were monitored to determine the impact on survival rates and tree growth. Programme lead David Siqueira says results showed high-quality sites and larger container systems tended to promote higher survival and faster early growth. “Some species, such as Leptospermum scoparium (manuka), survived and grew well (>75%), even when raised in small containers, while others such as Sophora microphylla (kowhai) had very low survival rates (< 25%) even when raised in re-vegetation container grade sizes,” Mr Siqueira said. Other species such as Aristotelia serrata (wineberry), Cordyline australis (cabbage tree), Plagianthus regius (ribbonwood) and Podocarpus totara appeared to depend more on site quality. “The results show the importance of aligning the choice of container grade size to the needs of individual species,” Mr Siqueira said. “Nursery container systems for raising New Zealand native plants should be chosen based on the biology of the species, nursery management practices, quality of the planting site and a balance between cost and benefit for each situation.” Nurseries have traditionally used large containers to successfully establish native species, but this is labour-intensive at the planting stage and limits the rate of establishment. Seedlings raised in larger containers can suffer greater transplantation shock, which hinders post-planting survival and growth performance. “The conventional approach of sowing native seed, setting out and then growing in containers takes 12-36 months, adding significantly to native tree establishment costs over typical New Zealand-grown exotic forest trees,” Mr Sequeira said. “By building a better understanding of how container size affects native tree growth, we hope this research will result in more plantings of native forests, increasing New Zealand’s biodiversity and contributing to the mitigation of climate change.” This research supports forestry-scale deployment of indigenous species under New Zealand’s One Billion Trees (1BT) Program. The 12 native species selected for the research were: Aristotelia serrata (wineberry/makomako) Coprosma grandifolia (kanono/raurēkau Coprosma robusta (karamu) Cordyline australis (cabbage tree/tī kōuka) Dodonaea viscosa (hopbush/ake ake) Hoheria angustifolia (narrow-leaved lacebark/houhere) Kunzea ericoides (kānuka) Leptospermum scoparium (mānuka) Melicytus ramiflorus (whiteywood/mahoe) Plagianthus regius (ribbonwood/mānatu) Podocarpus totara (tōtara) Sophora microphylla (small-leaved kōwhai)

MiTek and the Housing Industry Association (HIA) have joined forces to launch She Builds The Future – a program designed to inspire, educate and promote diversity in the residential building industry. Source: Timberbiz The program was launched at HIA’s National Policy Congress in Melbourne this week. HIA has been working in partnership with MiTek to bring this program to life since International Women’s Day in March. “If we can inspire people of all ages to think about the range of jobs this amazing industry has to offer, we know we can increase the diversity of the industry and create a culture of inclusion,” said HIA Deputy Managing Director, Kristin Brookfield. The She Builds The Future website is aimed at girls and women interested in a career in house contruction. The website provides a unique way to learn more about the pathways into the industry. “Knowing what you want to do when you leave school can be daunting. The She Builds The Future website showcases a range of jobs, onsite and offsite, in construction, manufacturing and business management. “The website provides insights on the what the job involves, why you’d be interested in the job and what you need to do to get that job. This information is supported by wonderful stories and guidance from real women, working in the job today,” said Ms Brookfield. “While most people think of the well-known jobs like builders, carpenters, electricians and plumbers, there are so many more people and jobs involved in building a new home. Every new home is built on strong foundations using high quality building materials. “Engineers, designers, fabricators and many more amazing jobs make up this essential sector of the building industry. “As a trusted innovation partner in off-site construction and a passionate advocate for a more inclusive building industry, our partnership with MiTek is something HIA see as vital to expanding the information young women can find on manufacturing and design jobs. “The website will showcase a variety of these roles and showcase women already achieving success in their chosen careers. David Oliver, Managing Director – MiTek, Asia Pacific said that MiTek and HIA were working together to help open doors for the next generation of builders, tradespeople, manufacturers and fabricators. “As we launch this initiative, we are proud to create pathways that inspire and empower women and girls to consider careers in building,” he said. The program also includes the release of the Australian edition of The House that She Built, a children’s story books written to open the world of home building to our youngest minds. With women currently making up just 15% of the construction industry in Australia, the program serves as a call to action, encouraging young minds to building as a genuine pathway to explore and develop skills that build confidence and character. “By supporting initiatives like She Builds the Future and The Australian edition of The House That She Built, MiTek and HIA are paving the way for a more inclusive workforce where women and diverse talents are not just welcomed but empowered to lead, thrive and contribute meaningfully to the construction industry,” Ms Brookfield said. The website is live at https://hia.com.au/shebuildsthefuture  

The Tasmanian Forest Products Association (TFPA) has welcomed the announcement from the Tasmanian Government of the second round of their on-island processing program. Source: Timberbiz Speaking following the announcement, TFPA Chief Executive Officer Nick Steel said the next round of grants will further support the state’s forestry industry to value-add to its timber in Tasmania. Minister for Business, Industry and Resources, Eric Abetz, said Tasmania’s increasing supply of plantation hardwood provided a major opportunity to grow the value of the wood and timber products sector. “Following the success of round 1 and given the importance of sustainable forestry to our economy, regional communities and local jobs, we have made an extra $5 million available through the program, taking the total round 2 funding to $8.5 million,” Minister Abetz said. “Processing locally grown timber right here in Tasmania not only value-adds but also creates jobs and opportunity, particularly in regional Tasmania.” Mr Steel said that continuing its on-island processing grants program will make a real difference to Tasmanian forestry businesses and their ability to adapt to future demands. “Grants such as this program encourage Tasmanian forestry businesses to invest in their businesses, which in turn employs local people, grows the local economy and strengthens many regional communities across the state – where our forestry businesses are located.” Mr Steel also welcomed news that this round of grants will be open all forestry businesses. “We welcome the $5 million set aside to assist our hardwood plantation estate, but we welcome the government’s decision to open up the program to all forestry businesses – allowing our softwood estate managers to access grants through the program,” he said. “Tasmanian forestry encompasses a wide range of timber, so it’s great to see that businesses from across the scope of Tasmanian forestry can benefit from this opportunity.” Mr Steel thanked the Government for its ongoing commitment to Tasmanian forestry businesses. “Tasmanian forestry is a respected, responsible and renewable industry, providing over 5,500 jobs across the state,” Mr Steel said. “By investing in our industry, the government is investing in the thousands of Tasmanian families who work across our many forestry businesses.” Applications for the next round of on-island processing grants are now open and will close on Thursday, 31 July 2025. For more information and to apply, go to the Department of State Growth website at www.stategrowth.tas.gov.au/grants_and_funding_opportunities  

Public native forests in NSW and across the country provide enormous benefits for Australians and misleading claims around public balance sheet losses, don’t cut it, Chief Executive Officer of the Australian Forest Products Association (AFPA), Diana Hallam said. Source: Timberbiz “Activist groups determined to end NSW’s sustainable native forestry industry are being deliberately misleading and completely ignore the sovereign capability, fire management and the major community and economic benefits of hardwood timber production as well as the recreational opportunities provided by NSW state forests, when making increasingly hysterical claims around the NSW Government-owned enterprise,” Ms Hallam said. Forestry Corporation of NSW (FCNSW) charges minimal fees for visitation and use of state forests, unlike the NSW National Parks and Wildlife Service, and utilises revenue from their commercial native and plantation forests to offset the costs of managing almost two million hectares of public native forests on behalf of the State. “Activists are quick to point out FCNSW’s hardwood division earnings loss of $14.9 million – trying to link it with a completely inaccurate notion that native forestry is somehow economically unsustainable while ignoring the provision of land management services. Running this argument is akin to arguing that if state run schools and hospitals don’t make a profit, they should be closed down as well. It’s ridiculous,” Ms Hallam said. “FCNSW’s hardwood division financial outcomes can be attributed to a range of factors, including lower timber production, costs associated with regulatory changes and other management expenses. That’s the reality and activists need to stop pedalling lies that public native forestry isn’t economically or environmentally sustainable. “Activists should also remember that the suite of forest management services that FCNSW provides alongside harvesting, helps mitigate against bushfire risk, better manages pests and feral animals, providing additional benefits for the State. That’s not to mention the community service provided through free public access, camping, picnic areas and roads that facilitate a range of recreational activities. “It’s worth noting, the Victorian Government pays forest contractors $72 million dollars annually to actively manage forests and provide the fire management capacity that was previously being provided by Vicforests as part of its sustainable harvest program. “These are important services that FCNSW provides in house in NSW. What we saw in Victoria with the closure of native forestry was a major increase of imports from Indonesia, Malaysia, China and Brazil with a worse environmental outcome. “The provision of state forests for a range of uses, including sustainable timber production is important for NSW and Australia. Without it, the global environment would be far worse off because Australia would have to fill the hardwood timber supply gap with more imported timber from overseas that doesn’t come with the environmental and sustainability credentials Australia operates within.”

The illustrious Donald Trump has played havoc with the world order, the wood fibre sector has been impacted but not as badly as many other commodities. So much has been written of DT’s every move and every word, to the extent the whole fiasco in my opinion is a media frenzy times 100. Indeed, what is actually happening, on any given day, is likely much different to what we see and hear. But tariffs are tariffs and that has its own levels of abnormalities. Great to hear as at mid-April, if it is factually correct, that DT has reversed some of the China imposed tariffs. The realisation must be as I stated at the outset of this very sad and sorry affair, it is the US consumers and rampant inflation that will suffer at the hands of inane leadership. For NZ Forest Grower and our reliance on China as a primary destination for wood fibre, times are getting a little tougher. Whilst prices were higher in Q1, we were producing far more logs than were being consumed and that has taken us to the “here we go again” scenario. CFR prices are dropping with some commentators suggest further decreases likely. Importantly, log consumption in China is still chugging along at over 50,000 m3 per day. We need to remind ourselves this reflects about 85 hectares of mature NZ Radiata pine forests being consumed every day and that is when the market is off the boil. On the downside, the Eastern Seaboard inventory remains stubbornly around the 4mil m3 mark and likely to increase in April with 45 plus vessels planned from NZ. That is about 1.7 mil m3 of logs a month for a market that is using 1.35mil m3 per month. I doubt you will need your abacus to work out what happens next. On the upside, the tariff fiasco is having a net impact on shipping costs with NZ production slowly grinding down and plenty of vessels opening on NZ, Charterers have become the cat and the ship owners, the mouse. For Q1, it was the other way around. Reduced shipping costs apply for both China and India, chasing CFR prices down for both destinations. None of that helps Kiwi forest-owners, as it is the production bubble that needs to burst for us to help both markets to recover. The selling price (CFR) for the market indicator A grade in China is in a US110 – 112 per cubic metre band as at mid-April. LC’s and contracts are harder to get than tariff reductions out of DT and the market is in a nervously poised mode, waiting to see where the bottom is. For those of us focussed on the India market the news is more positive but not by a great margin. Current CFR prices for A grade are in a US$116 – 120 band, a US$8 to 10 reduction on prior levels. Demand is weak but the inventory, whilst high, is not as eye watering as China. For India the same story of over supply dominates, with NZ companies who have not been traditional players trying to find solutions outside China. The inventory situation was helped by the non-arrival in March of 2 vessels from Australia. These have now discharged with a total 9 vessels expected in April and 9 in May. In both cases this represents the only NZ Log destination Port in India, Kandla receiving 1 – 2 more vessels per month than the market is currently consuming. Market sentiment in India is weak currently, and what will be a surprise to many, labour shortages are reducing overall productivity. Many believe the market is close to bottom with many of the India economic fundamentals, including rampant middle class wealth growth, suggesting the current situation is a blip. It is certainly time for NZ Forestry Inc to start investing in market development away from China, India would be a great place to start. As it has been in the past our NZ domestic sawmills are chugging along, consuming good volumes of logs and at stable prices. Demand for logs to make house framing lumber is improving with good order books in the mix. As always, please remember the thoroughly important message, “despite the challenges, it remains, as always, fundamentally important, the only way forward for climate, country and the planet, is to get out there and plant more trees”! Allan Laurie, Managing Director, Laurie Forestry. Laurie Forestry is a leading Australasian forestry company that provides consultancy, management and marketing services to forest owners, farmers, sawmills and manufacturers.