Australia’s property market is strengthening, as outlined by national figures for construction and home-lending.
The latest quarterly report released by the Housing Industry Association (HIA) indicates a boost in the construction of new homes and units for the 2013, 2014 financial year. The data also suggests a prospective recovery for renovation.
New South Wales is leading this surge in construction as figures suggest that the number of dwelling commencements will reach 49,000. This is an increase of 21.9 per cent and the highest recorded number in the past ten years.
The report also reveals that the construction of new homes in Queensland is expected to reach 36,335 over the financial year. This is a rise of 24% and the highest level recorded over the past six years.
An increase in the beginning stages of construction is also outlined in South Australia and Western Australia.
The Australian Bureau of statistics calculated over $13 Billion dollars of residential building work during the March 2014 quarter.
Economist Geordan Murray explains the links between dwelling approvals and residential building. Murray identifies these figures as the “first official statistics confirming that that the strong leading indicators we saw late last year are flowing through to strong levels of residential building activity on the ground.”
The future is also optimistic for home lending, particularly in Western Australia where state-wide figures have increased by 20 per cent over the past twelve months.
National records from the Australian Bureau of Statistics reveals lending for new home building is rising to its highest quarterly level since 2010. An increased level of employment in the building industry is expected to follow.
Experts anticipate an increase in renovation activity, which has suffered significantly over the previous decade. The value of work done on renovations has increased slightly in the March quarter, signifying the potential for further growth.
Housing Industry Association Chief Economist Harley Dale said it is highly probable that this nation-wide growth will be maintained throughout 2014.
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