Research by the Housing Industry Association (HIA) reveals 2015 will see significant growth in the new home building sector, particularly in the early months.
The HIA’s New Home Sales Report, focussing on Australia’s largest volume builders, showed increases in both new home sales and residential building approvals - the key indicators of new housing construction activity during last year’s December quarter.
HIA Economist Diwa Hopkins says, “This is a clear indication that actual residential construction activity will rise in the current early months of 2015, which is good news for the broader domestic economy in addition to the housing sector.”
Hopkins said that monthly sales volumes were consistently strong in 2014, “following the recovery that characterised 2013,” with the total number of sales for the year 14.4 per cent higher than in 2013.
“A key change in conditions to the residential construction sector in 2015 is the February cut to the
official cash rate to a new historic low,” Hopkins said. “However, it should be noted that this cut was made in the context of a mooted tightening of lending conditions in parts of the housing market.”
In December 2014, detached house sales grew by 2.8 per cent in Western Australia and 2.6 per cent in Queensland. In South Australia, Victoria and New South Wales, the percentages fell by 5.3, 2.6 and 1.4, respectively.