Property Market Information: New home building remains strong across nation

By the resi financial blog team, 09 September 2014

Property Market Information: New home building remains strong across nation

As more people begin to settle into capital city properties, the question of sustaining real estate numbers has been on the tip of everyone's tongue. Luckily, the latest figures from the Australian Bureau of Statistics (ABS) put these fears at ease, highlighting the strength of the nation's market and illustrating a bounce back in dwelling approvals in July. This could present an opportunity for those considering a construction home loan in the near future.

According to the ABS figures, a total of 16,320 dwellings were approved across the nation during July - representing a 2.5 per cent increase over the previous month. Furthermore, when compared to the previous three month period, the approval figure was also up by 2.5 per cent, with new home approvals reaching 195,227 over the last 12 months alone.

Housing Industry Economist Shane Garrett said these figures broke a market record, with the highest number of seasonally adjusted new home building approvals being seen in Australia since 1984, as well as recording figures higher than the 1994 building boom - a big achievement for both the nation's property market and overall economic growth heading forward.

He went on to say, however, that it's important to begin taking steps to ensure this growth remains steady and on point.

"The key is to ensure that a number of markets, like Sydney for example, achieve sustainably healthy levels of new home over the coming decade which far outweigh what has been built over the last ten years. Numerous government policies across all tiers stand in the way of this objective being achieved," said Mr Garrett in a September 2 statement.

"For example, the typical New South Wales home buyer has to fork out some $19,200 on a median-priced dwelling. Stamp duty is just the tip of the iceberg with respect to taxes on new housing. Easing some of the burden on the industry would do much for the sustainable supply of affordable housing."

Categories: Home Loans, Personal Finance