According to the latest projections from the Housing Industry Association (HIA), the Australian housing market is expected to break its previous record for housing starts in the coming months.
According to the HIA outlook, single-detached housing starts will hit a new record in the 12 months ending September 2021, with more than 146,000 single-detached homes starting construction. This is 20% higher than the previous high in 2018. Renovation activity is also on the verge of peaking and will likely remain high.
"This large volume of work will ensure that the industry remains very active at least until the second half of 2022," said Angela Lillicrap, economist at HIA.
Lillicrap said the HomeBuilder program and the low interest rate environment are the main drivers of this potential surge in housing starts.
"This level of activity is unlikely to be seen again for many years, if not decades. The main challenge for the industry has gone from a decline in demand around the same time to Last year to a sufficient supply of materials, and labor to meet that demand, "she said.
Lillicrap said the timing and speed of the resumption of overseas migration will have a significant impact on these predictions. She said that the return to stable and certain population growth is a crucial consideration for stable economic growth, which will ultimately have an impact on the housing market.
"If overseas migration returns sooner or faster than expected, the low of 93,500 new housing starts in 2023 will not be as deep as currently expected. The emerging slowdown in new detached start-ups will be exacerbated, ”she said.
Top suburbs:
Chermside
,
Alexandria
,
Rockville
,
homebush
,
Wentworthville
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in real estate, it is important to ensure that you not only have the lowest available rate possible, but also have the right loan features for your needs. needs.
You only need to fill in a few details below and we will then arrange for a local mortgage broker to contact you and determine the characteristics or types of loans that suit your needs. We'll even help you with the paperwork. In addition, an appointment is free.
We value your privacy and take all your information seriously – you can check
our privacy policy here
