2015 gets off to a great building start
With concerns around housing supply coming thick and fast from the Housing Industry ...
With concerns around housing supply coming thick and fast from the Housing Industry Association (HIA), there has been some good news for those in search of property for sale in Australia with the release of a new document.
The HIA New Home Sales Report has released the figures for new residential real estate sold in Australia in January, indicating a slow and steady increase of 1.8 per cent, which will interest anyone with an eye on the market.
Apartments showcasing their strength
Multi-unit structures experienced a large 9.9 per cent increase during January, which the HIA says forms part of an ongoing trend. On the other hand, detached homes did not see a significant increase in sales across this period. This does not necessarily mean bad things for standalone homes, as HIA Chief Economist Harley Dale discussed in the March 3 press release.
"On a state basis, detached house sales appear to have peaked in New South Wales and Western Australia, but the modest easing in momentum is occurring from a very high starting point – these two markets have been the heavyweights of the current new housing cycle," said Mr Dale.
So, a slowdown from these peaks may simply mean a stabilisation in the market. Meanwhile, a number of projects indicate that multi-unit dwellings could still have significant growth left in them.
Incoming projects to uphold home sales
Mr Dale has noted that the amount of new home sales is matching high levels of construction in Australia, and this appears set to continue, judging by other sources. A Master Builders Association of Queensland release from February 17 showed high confidence in the building sector across Queensland, while a recent Property Council of Australia release congratulated Brisbane City Council on its moves to facilitate the transformation of commercial real estate into student accommodation, with the potential for other developments.
This suggests that the increase in the construction and sale of new dwellings will continue for some time yet.
Housing a focus for the wider economy
On the back of these positive indicators, the HIA is confident that housing is going to be a significant driver of growth across the board.
"There is no doubt that the new housing sector is the star of Australia's domestic economy," said Mr Dale. With buying, selling and investment opportunities on the horizon, 2015 could be an excellent time to start making a move into the property market.