According to the latest report of the Housing Industry Association (HIA), the residential construction sector is starting to cool down, in the state of Victoria.
Victoria experienced a new wave of home building that lasted five years, the level of activity having surpassed previous highs. However, this growth cycle is now over.
"After a prolonged and sustained boom, activity in the residential construction sector in Victoria is cooling," said Fiona Nield, executive director of the IHA in Victoria.
In addition to previous statements by Senior IHA economist Tim Reardon, Neild stressed that the restrictions imposed by APRA had become an obstacle for market participants.
"APRA initially enacted regulations to limit high-risk lending practices, but the actual changes in the lending environment go beyond that. Ordinary homebuyers now face some constraints in accessing financing, "she said.
"Slower processing and reduced lending [are] have a significant impact on the housing market. The impact on residential construction activity will become more evident as we enter the new year. "
The slowdown in new housing construction is expected to begin in 2018-2019, and new housing starts are expected to fall by 34.8% from the peak of 2020-21.
As a result of this reflection, the planned housing starts in 2020-2021 will increase to less than 50,000 units, a level slightly below the average of the last ten years.
Despite discouraging prospects, Neild assured that Victoria would be able to overcome the situation.
"Victoria is in a strong position to cope with this slowdown: the state's labor market is in a strong position, economic growth has outpaced the national average over the past four years and growth Demographic continues to stimulate demand for additional housing, "said Nield.
Do you have more than $ 200,000 in your super fund? You Can Use Your Super To Buy A Property – Find Out How
Top suburbs:
Rockville
,
Tuart Hill
,
fresh water
,
trott park
,
Bendigo
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it's important to make sure that you do not just have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and we will then do what is necessary for an Australian mortgage broker to contact you and establish a solution. What features or types of loans are suitable for your needs? We will even help with the paperwork. In addition, an appointment is free.
We respect your privacy and treat all your information seriously – you can check
our privacy policy here
