New home building approaches record levels

New home building approaches record levels

by 0 comments

New home building will record significant increases in 2014, but will slow down in 2015 and 2016, according to new industry forecasts.

The Housing Industry Association (HIA) said new dwelling commencements would reach 180,000 in 2014, which would make it the second-highest level on record.

That would represent 7.1 per cent year-on-year growth, although it would be less than the 10.9 per cent growth recorded in 2013.

Commencements will decline in 2015 and 2016 to a level just under 170,000, according to the association.

HIA chief economist Harley Dale said residential construction investment would boost demand across the manufacturing, retail, and supply and distribution sectors.

“Residential construction is making a vital contribution to the rebalancing of growth in the nation’s economy,” he said.

Meanwhile, the association has predicted a renovations expansion after activity fell to a 10-year low last year.

Renovations are forecast to grow by one per cent in the 2013/2014 financial year, followed by growth in the next three financial years of 1.2 per cent, 2.3 per cent and 2.5 per cent.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Marnie Seinor on structure, database DNA and connecting with her local community

There’s no such thing as an “off switch” in real estate – so says McGrath agent Marnie Seinor, who came in at number 78 in this year...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Depends on the group
Do you have an industry update?