NSW to see flood of new housing

A-rush-of-new-homes-is-expected-to-come-to-New-South-Wales_157_90989_0_14101799_300Buyers fighting tooth and nail for a property in New South Wales’ in-demand capital city may find this year their saving grace. The Housing Industry Association (HIA) recently reported that 2014 is set to be a banner year in terms of new home building, particularly in the First State.

The spring edition of the HIA’s National Outlook report card released late last month predicted that a record number of new homes would be commenced in 2014, reaching a figure of nearly 190,000. This would overtake the previous record of 187,000 set 20 years ago now.

“Record low borrowing costs have combined with other factors such as high net overseas migration to unleash substantial pent-up demand for new housing. These factors will keep the level of new homes commenced at historically elevated levels,” said HIA Chief Economist Harley Dale in a November 24 release.

Buyers perusing the listings in Sydney should be especially heartened by the HIA’s forecast. HIA Executive Director for New South Wales David Bare predicted that new home starts in New South Wales would top 50,000 in 2015, an increase of 4.5 per cent from this year. This builds on the already impressive increase of 9.5 per cent seen since last year, and the even more substantial rise of 31.7 per cent seen in 2013.

The Harbour City is known for its tight housing market, where buyers are competing intensely for a limited supply of housing. As the biggest source of population gains in NSW and its biggest city, Sydney will no doubt see many of these dwelling starts crop up in some of its outer areas.

This should not only give buyers more options, it will also likely increase housing affordability in the city, as the larger supply of housing eases competition.

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