Housing recovery on track


Housing recovery on track

Posted on Tuesday, June 10 2014 at 4:15 PM

Based on the latest Australian Bureau of Statistics (ABS) housing finance data, the recovery in residential building is set to continue but at a more sustainable rate, according to experts.

“Despite the flat headline figure for the
number of owner-occupied housing finance commitments in April, builders will be
encouraged to see that overall finance commitments underpinning the upturn in
residential building activity are holding up,” Peter Jones, chief economist of
Master Builders Australia, says. 

“While the numbers of commitments for
construction or purchase of new dwellings fell in April, there’s been solid
growth over the year.”

Jones says commitments for construction of
dwellings fell in April, but are up 15 per cent over the year.

“Investors remain a key driver of the upturn
in residential building activity, with the value of commitments for investment
housing continuing to power ahead, up by 2.3 per cent in April to be 30 per
cent higher than a year ago,” he says.

“However, first homebuyers only represented
12.3 per cent of all dwellings financed in April, down two percentage points on
the 14.3 per cent last year. 

“Looking ahead, builders will be looking to the government to rollout
the detail of its national economic growth strategy foreshadowed in the Budget
to boost homebuyer and investor confidence.” 

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