All systems go for housing market over the coming year

A-new-report-outlines-a-sunny-outlook-for-the-property-market_157_83255_0_14101037_300A new report indicates the Australian property market is looking healthy going into spring, with Sydney in particular showing striking gains.

The RP Data and Property Council of Australia’s Australian Residential Development Outlook for spring 2014 has argued that the nation’s construction industry will improve buyers’ accessibility to housing by ramping up dwelling starts in 2015, passing the 180,000 mark. Over the last 10 years, Australia has on average built 150,000 homes a year, a number the report says won’t be enough to satiate housing demand in the country.

“There had been a gradual improvement in the pace of activity in the non-resource sector and forward-looking indicators suggested that further strong growth in residential construction was in prospect,” the report stated.

This argument is bolstered by recent new home lending figures released by the Australian Bureau of Statistics, which show that the number of loans going to owner occupiers buying or constructing a new home grew by 1.9 per cent over the three months to July 2014.

It’s a trend that is especially pronounced in New South Wales, where the number of owner-occupier loans for new houses increased by 9 per cent during July. Clearly, buyers are eager to obtain for themselves a slice of real estate in the First State, which is not only driving the nation-wide increase in new home lending, but will also likely spur on further new home construction.

The Australian Residential Development Outlook had other positive indicators, in particular regarding Sydney. According to the report, thanks to strong activity in the Sydney market, total sale volumes over the 2014 financial year increased. The NSW capital has also consistently posted auction clearance rates above the 70 per cent mark, outshining the capital city average of 60 per cent.

All of this will be welcome news for home buyers. A vibrant, thriving housing market, coupled with the increasing volume of housing stock being injected into the city, indicates that buyers may well find it easier going to find a property in which to settle down over the next year, at least.

Leave a Reply

Your email address will not be published. Required fields are marked *