East Coast Housing Boom
The east coast of Australia is currently experiencing a record boom in housing construction during 2015 with experts predicting the increase to continue for several years.
Previous suspicions that the market would be oversupplied with new dwellings have been dispelled by constant solid figures showing NSW and Victoria are the place to build right now.
Factors supporting the new home building economy include a current undersupply in desirable locations such as Sydney and Melbourne, combined with record popularity of investment properties.
HIA Economist Harvey Dale mentioned that although just over 50,000 new dwellings are currently under construction in NSW, it is still not enough to plug the gap there. He states that 60,000 dwellings are required in NSW this year, and this needs to continue for possibly the next two years, before we’ll come close to taking care of the shortage.
The strong NSW economy is also encouraging more people from interstate to come to Sydney to look for work, while the rental market is seriously under-supplied and over-subscribed.
This trend is also being experienced in Port Macquarie where the value of development applications across all sectors has almost doubled since the 2013-14 period. In the 12-month period to June 2015 more than 1,150 construction approvals were issued which resulted in 4,718 buildings. This is great news for builders, with our new Port Macquarie showroom and office at 5 Merrigal Rd now supplying the area with Southern Star Aluminium and Canterbury Timber windows and doors.
Though the increase in new home building in Victoria’s capital appears to be slightly slowing, the 55,300 dwellings commenced in Melbourne during September is a significantly higher result than this time last year.
These figures indicate the current and future demand for residential construction on the east coast of Australia; a great time to be in the home building industry.