The strong Australian dollar means the construction sector is being flooded with European softwood imports, the latest URS timber market survey shows.
A report from URS said the dollar's rise had encouraged international timber imports by making them more competitive with locally produced timber.
The situation was also put down to a relatively strong housing market in Australia compared to the European Union and the United States.
Meanwhile, Australian hardwood prices are rising, possible due to pressure from imported engineered wood products.
URS expects the high level of timber imports to continue until later this year.
URS found that in 2010, prices for blackbutt rose by around six per cent and up to 7.5 per cent for spotted gum products.
Victorian ash select-grade joinery also increased in price by more than 5 per cent in the 12 months.
The URS report is available on its website.
