Australia to see construction boom
It looks as though the number of construction loans will continue to grow in 2015, as the Housing Industry Association (HIA) reports that the number of new homes being built across the country reaches new peaks.
The National Outlook for summer 2015 forecasts encouraging trends for the Australian property market over the coming months. Investors have already proven their taste for new builds and these latest figures confirm that new homes are pick of the bunch.
HIA Chief Economist, Harley Dale, said the market is set for an additional 195,936 homes to be brought onto the market in 2014/2015, cementing the industry’s position as the stalwart of the Australian economy.
“That result would represent growth of 7.7 per cent and cap a third year in a row where new home construction has headed higher,” he said.
“Imagine how weak the Australian economy would be without new housing and its economic multiplier benefits!”
Mr Dale also noted that more homes in the pipeline is great news for buyers, creating more affordable conditions and releasing some of the pricing pressures that have plagued certain markets over the past year.
“We need to build on the lofty heights being achieved this new housing cycle and ensure that supply in coming years meets the requirements of a growing and ageing population,” he said.
Unsurprisingly New South Wales is ahead of the pack, with 50,000 new homes expected to be built over the next year. Both Queensland and Victoria are also set to experience similar growth. A stellar 14.9 per cent rise in the number of home commencements is forecast for Queensland, while Victoria is flexing its muscles with 7.3 per cent growth augured for the coming year. The report also predicts a 2 per cent rise for Western Australia.
However, South Australia lags behind considerably with new dwelling commencements expected to drop by 7.2 per cent.