Tag Archives: market

Building Approvals drop back in August – but higher than 2012

Building approvals dropped back again in August 2013 although building approvals in 2013 are running at higher levels overall than in 2012.

Building approvals are continuing to trend higher in New South Wales but supply side constraints look like holding back the market for the short term at least.

In August 2013, total seasonally adjusted building approvals increased by 10.6 per cent in New South Wales.

Tom

Housing picks up where mining leaves off

According to one leading economist, the housing market is set to take over from mining as Australia’s primary economic driver.

In his latest release of the CommSec Economic Insights report, chief economist Craig James says real estate is poised to lead the fiscal way.

“The housing sector is the sector most likely to take the baton from mining and drive the economy forward over the coming year,” he says.

“Home prices are lifting at the fastest annual rate in more than two and a half years with prices at the top end of the market now rallying and Sydney home prices at record highs.”

The report goes on to say populations are rising in capital cities but new home construction isn’t keeping up, which is resulting in generally tighter vacancy rates.

“New construction will need to respond to the demands of owner-occupiers, while investors will be enticed to shift funds from cash into property ownership.”

The report sights RP Data-Rismark analysis which shows capital city home prices rose by 1.6 per cent in July with house prices up 1.7 per cent and apartment prices up 0.6 per cent.

Home prices are higher now than they were a year ago in seven of the eight capital cities with Perth, Sydney, Melbourne and Canberra all up by more than four per cent.

“Housing has more significant multiplier effects across the Australian economy than the mining sector, so stronger construction and purchase activity will be important in providing fresh momentum to economic growth.

“With the cash rate poised to fall to 2.5 per cent and with returns on investment properties currently running at a 9.4 per cent annual rate, more budding investors are likely to be enticed to shift funds from cash into residential property,” James says.

Source: Australian Property Investor August 2013


Strong NSW Lending Figures Welcomed

The number of loans for the construction or purchase of new dwellings increased by 37.9 per cent year on year during May 2013. Over the three months to May, the number of loans increased by 39.4 per cent year on year.

This encouraging set of figures for May 2013 is in line with the trend over the current months showing a growth in the NSW new home construction market.

Tom.