Property Market Information: Home building activity rose exponentially over 2013 Q4

By the resi financial blog team, 17 April 2014

Home building activity rose exponentially over 2013 Q4

The Australian Bureau of Statistics' latest batch of data has revealed the strength of Australia's new home building activity during the final quarter of 2013, shedding light on the nation's current market development.

Overall, Australia saw the number of dwelling commencements grow by 8.2 per cent over the last three months of 2013 - more specifically, detached house commencements dropped by 0.7 per cent, while apartments and unit commencement rose by 21.3 per cent.

Shifting trends in accommodation choices have been seen across a number of metropolitan regions in Australia, which could highlight a growing investment opportunity in medium-density dwellings in the coming years. 

Over the quarter, South Australia saw the largest growth in commencement starts, rising by 25.2 per cent over the three-month period. Following this, Queensland (15.8 per cent), Victoria (11.3 per cent) and New South Wales (2.8 per cent) all experienced impressive degrees of growth over the period. Housing Industry Association Economist Geordan Murray said the 47,326 dwellings commenced over the three months was the highest quarterly result for the nation since 2002. 

"The most notable contributor to the strong growth in dwelling commencements in the December quarter was Victoria, where commencement numbers jumped 11.3 per cent in the quarter owing to a 33 per cent jump in multi-unit commencements," said Mr Murray in an April 16 statement. 

"New home building activity in Queensland also grew strongly in the final quarter of 2013. It is encouraging to see the state's housing recovery gathering momentum. Dwelling commencements lifted 15.8 per cent in the December quarter to around 9,233 in the quarter. This is comparable with the healthy level of activity in middle part of the last decade."

As multi-unit rental yields continue to rise in Victoria, investment in apartments and the continued development of the real estate market highlights the future growth of the nation's economy. 

Categories: Home Loans, Property Investment