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
So far a range of indicators have shown positive forecasts towards a stronger NSW residential construction sector.
In the first six months of 2013:
– land sales up in 11 of 14 NSW Regions
– Building Approvals UP 8%
– Construction Loans UP 7%
– Lending for new residential investment property UP 21%.
So far leading industry and economic projections show real growth in NSW construction.This is great news for NSW owner builders.
Tom
The Electronic Housing Code (EHC) project is focused on the development of an online system for the electronic lodgement of complying development applications under the NSW Housing Code for lots 200m2and above. This system will also allow the user to determine if they are able to proceed with their development without further approvals, as an exempt development.
The Electronic Housing Code has been built primarily for local industry professionals, such as project home builders, planners, developers and architects. However it is also able to be used by the local community within the participating local government areas.
This system, launched by the Minister for Planning & Infrastructure on the 28th October 2011, is currently operational in 32 local government areas – Armidale Dumaresq, Ballina, Bankstown, Blacktown, Camden, Campbelltown, City of Ryde, Coffs Harbour, Kogarah, Ku-Ring-Gai, Lake Macquarie, Lismore, Maitland, Mid-Western, Penrith, Pittwater, Port Macquarie-Hastings, Randwick, Rockdale, Shellharbour, Sutherland, Tamworth, The Hills, Tweed Shire, Wagga Wagga, Warringah, Waverley, Willoughby, Wingecarribee, Wollondilly, Wollongong and Wyong Councils. A further 3 Councils are expected to be in operation on the system shortly.
Click here for more info. : http://www.ehc.nsw.gov.au/
Tom
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
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.
With the growing number of people who have sought to buy a new dwelling in NSW, the recent policy initiatives to improve housing supply, and continued population growth are all expected to result in a solid pick-up in housing investment over the medium term. In particular, a number of private sector economists are forecasting housing investment as a share of GDP to return to its long-run average level over the next 5 years. This is positive news for the NSW residential housing market and owner builders.
Tom.
Hi SAFE RITE students.
We have now launched our new students online blog. The purpose of this online forum is to allow our owner builder and white card course participants and SAFE RITE Members to share the latest information and industry updates relating to their courses and projects.
Please enjoy.
The SAFE RITE Team