The Australian real estate market is expected to see strong recovery over the next 12 months, according to a new report from the Housing Industry Association (HIA).
This could create encouraging conditions for homeowners, buyers and investors alike, as the level of housing construction begins to rise.
Information from HIA’s National Outlook report stated that the real estate market will help to support economic growth in Australia due to a higher rate of construction and stronger activity in certain states around the country.
“Residential construction investment will account for a growing share of the economy in 2014, and should fill some of the gap left by the decline of mining investment,” said HIA Senior Economist Shane Garrett in a February 28 statement.
Mr Garrett went on to explain the report forecasts dwelling commencements to break the 165,000 threshold for “only the second time in a decade”, which may demonstrate the current strength of buyer activity and demand for brand new property across the country.
This activity is expected to be largely centered in New South Wales, Queensland and Western Australia, leading to encouraging conditions for home buyers and investors in these states.
While Mr Garrett noted the states of Victoria and Tasmania are still expected to face some challenges for new building and renovations, Queensland is predicted to be one of the strongest in the country. This is welcome news for the industry in Queensland, as recent years have seen low activity in these sectors.
Housing starts are predicted to rise by 14.8 per cent over 2013/2014, which is a substantial increase from the previous year’s growth of 3.8 per cent. This is expected to improve even further heading into 2017/2018, when commencements should reach over 40,000.
Over 2013/2014, the renovations market is predicted to head into a recovery after struggling throughout the previous year.
A higher rate of housing commencements in Queensland could mean more apartments become available in the state, as a recent report predicted strong activity for newly built apartments in Brisbane.
The BIS Shrapnel ‘Inner Brisbane Apartments 2013-2020’ report predicts that apartment completions in the region will reach record levels. This will occur after completions exceed 3,000 dwellings in 2015/2016 – much higher than the peak recorded in 2005/2006 of 2,250 apartments.
As a result, the higher number of completions for apartments could indicate a preference for this type of dwelling over others, while also showing the potential for increased investor activity.
Article first appeared on, and is courtesy of, raywhite.com.