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Tamawood’s (ASX:TWD) building enquiries decline amid interest rate hikes

ASX News, Consumer Discretionary
ASX:TWD      MCAP $99.89M
12 May 2022 17:12 (AEDT)

Home construction company Tamawood (TWD) has seen enquiries decline in the last week, which is attributed to interest rate rises and the upcoming Australian election.

However, the company believes it is well positioned to take advantage of the changing economic climate.

It expects to see future success due to its lower costs, experienced staff, and rental market conditions.

In addition, recently introduced accessible housing requirements are expected to have cost implications for competitors in the industry.

Costs and availability of building materials have been significantly affected recently through the Ukraine war and ongoing lockdowns in China.

However, the company has ensured it is well supplied to finish homes and hold six months of stock and order in advance. It said it has achieved this through its recent acquisition of Astivita and supplier relationships.

Shares were trading 5.36 per cent lower today at $3 each at market close.

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