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  • New home building boom to hit NSW, Queensland

    According to the National Outlook report card put out by the Housing Industry Association (HIA) for Summer 2015, this year will see record-breaking figures for new home building – and New South Wales and Queensland are set to be the chief recipients.

    “The report card identifies 2014/15 as the year when a record number of new homes will be commenced in Australia,” HIA Chief Economist Harley Dale said in a February 22 release. This will no doubt correlate with a corresponding swell in applications to home mortgage lenders for financing.

    New dwelling commencements are expected to hit an all-time high of 195,936 for the year – the third year in a row that new home construction has risen. Mr Dale stressed that this surge in new housing construction would be particularly important given the various challenges facing Australia, namely:

    • A booming population
    • A growing number of elderly
    • The winding down of the mining boom, for decades the crutch that had been propping up the Australian economy

    However, the new home building boom was not necessarily spread evenly throughout the states and territories. In fact, there were two states in particular that were due to see the lion’s share of this new home construction activity.

    The New South Wales property market has been a big mover in the wider housing industry for some time now, with its capital standing head and shoulders above the rest of the country in regards to capital growth and consumer demand. It’s not surprising, then, to see that it is the standout performer when it comes to new home building.

    By 2020, the HIA is predicting that NSW will see 45,000 new homes being constructed a year in the state. In fact, some of the figures surrounding new home building in the state are breathtaking:

    • A 9.7 per cent increase in new dwelling commencements in 2014
    • This is 31.8 per cent higher than the previous year
    • On top of 51,467 dwelling starts expected in 2015

    “Increased new home building will help improve affordability but it must be sustained,” said NSW Executive Director, New South Wales David Bare in a February 23 release.

    Queensland is equally impressive when it comes to new home building. The HIA expects an average of more than 40,000 new houses per year to be built over the next few years in the Sunshine State. HIA Executive Director, Queensland, Warwick Temby chalked this up to a combination of population growth and a low interest rate environment.

    With interest rates low, and expected to trend even lower over the course of this year, it seems the stars are aligning for those wanting to look at their home loan options.

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