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A strong year ahead for Australian housing

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The year ahead is increasingly looking like a strong one for the Australian housing market, according to new data from the Housing Industry Association (HIA). Such a prediction is good news for those involved in property development.

Released at the beginning of March, a HIA report explained that January 2016 saw an increase in new home sales. In fact, it's the second consecutive increase.

HIA Chief Economist, Dr Harley Dale, said that new home sales are showing further strength. He explained that detached housing and multi-construction especially are set to be see healthy developments.

When seasonally adjusted, new home sales increased by a total of 3.1 per cent in January alone. Detached houses climbed by 5.8 per cent, with multi-unit sales dropping by the same amount. What's more, detached home sales actually grew across all mainland Australian states and territories. Queensland accounted for the highest percentage of sales growth, with 7.9 per cent, while South Australia recorded the smallest at 1.3 per cent.

Mr Dale did note, however, that once the record pipeline has come to an end, new construction activity will likely soften.

A look at GDP

Interestingly, the HIA also noted that housing has been playing a big part in GDP growth. HIA Senior Economist Shane Garrett noted that the final quarter of last year saw growth of 0.6 per cent. Furthermore, annual growth through to December hit 3 per cent.

"New residential building played its part in beefing up the numbers. During the quarter, new dwelling construction rose by 3.6 per cent and was some 12.1 per cent higher than the same period one year earlier," he said.

Interestingly, Mr Garrett explained that household spending growth was strong throughout 2015, something that's been helped along by both low interest rates and strong dwelling price growth throughout key markets.

China: Australian spending set to slow?

Recently, the BBC explained that while Chinese buyers heading overseas to purchase Australian properties may have ruled headlines for some time, this may be at an end. The BBC noted that Beijing is attempting to keep spending in-country thanks to pressure on the yuan.

Australian real estate agent Scott Kirchner, who is based in Shanghai, explained to the BBC that the rules were loose until now, but the government is starting to limit on how much money individuals can take outside of China.

This year, property investors will want to ensure they're prepared with the right software solutions. Reach out to Estate Master to learn more.

Date Published: 31 Mar 2016
Category: General News

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