The residential housing market is expected to prop up the flat Australian economy heading into 2015, according to the latest ANZ/Property Council Survey
The survey shows residential construction activity is expected to remain one of the highest of all sectors over the next twelve months. Property and construction currently account for around 12.5% of GDP and employs 1.3 million Australians.
Property Council Chief Executive, Ken Morrison says the positive results out of property should send a clear message to policymakers that it was time to make the sector a priority.
“Governments at a national and state level must urgently start putting in place the policies to facilitate further sustained growth in this critical sector. Outside of property, there is no other industry in a position to step up and drive economic growth the way we can - and are already,” he said.
“The property sector starts the New Year far more confident than the broader business community, buoyed by robust market sales, further price growth, and a solid pipeline of construction. Federal and state governments need to ensure their tax, planning, infrastructure and other policy settings help facilitate this growth.”
According to the survey, residential price growth expectations will maintain a positive outlook for 2015 but will ease from the peaks of mid-2014, which will be welcome news for homebuyers.
ANZ’s chief economist, Warren Hogan says the housing market is critical as our economy transitions from the mining boom.
“A positive outlook for property values and construction is critical to the near-term Australian economic outlook as non-mining business investment and household consumption reflect a sluggish transition to non-mining drivers of economic growth.”