Housing commencement rates increase following two year decline

By the resi financial blog team, 29 October 2013

Housing commecements rise

The Australian property market is beginning to make headway towards a recovery, as the latest data from the Australian Bureau of Statistics (ABS) highlights an increased number of housing commencements in 2013 in the wake of two consecutive annual declines.

This could signal a fantastic opportunity for property investors looking into off the plan purchases, or owner-occupiers who wish to upgrade their living situation by building their very own home in the near future.

Dwelling commencements increased by 11.2 per cent during 2012/13, which can be considered a decent recovery following consecutive declines of 5.8 per cent and 11.1 per cent  in 2010/11 and 2011/12, respectively.

Chief economist for the Housing Industry Association, Dr Harley Dale, said the shift was an "encouraging recovery" for the nation, stating that the predicted March 2013 quarter result of 160,000 was surpassed, with housing commencements reaching a huge 161,043.

"That is a healthy figure by recent standards and certainly a promising first round recovery for new home building," said Dr Dale in an October 11 statement.

The Australian Capital Territory experienced an explosive growth of 107.6 per cent for the year so far Tasmania also reported a positive commencement rate growth after increasing by 15.6 per cent.

Furthermore, the housing development market in Western Australia (11.3 per cent), Queensland (8 per cent) and South Australia (6 per cent) also recorded positive growth over the period of the year.

Dr Dale stated this environment lends itself to an "acceleration of growth in 2013/14 reflective of a broad-based recovery in housing starts".

"A sustained improvement in confidence, together with low interest rates, would assist the prospect of the recovery gathering legs," said Dr Dale.

With the commencement rate of dwellings increasing for the first time in two years, now could be the perfect time to investigate the home loan options available, and pursue your real estate-related goals today!

Categories: Home Loans, Personal Finance, Property Investment