The Housing Industry Association, the voice of Australia’s residential building industry, has released the Summer 2015 edition of its National Outlook, Australia’s most comprehensive housing report card.
“The report card identifies 2014/15 as the year when a record number of new homes will be commenced in Australia,” commented HIA Chief Economist, Harley Dale.
“Residential construction is the success story of the Australian domestic economy, although wide geographical divergences are still evident, trading conditions are more competitive than ever, and the renovations part of the market is still soft,” noted Harley Dale.
“National new home building activity is the star of the housing show with a record level of 195,936 new dwelling commencements forecast for 2014/15. That result would represent growth of 7.7 per cent and cap a third year in a row where new home construction has headed higher. Imagine how weak the Australian economy would be without new housing and its economic multiplier benefits!”
“We need to build on the lofty heights being achieved this new housing cycle and ensure that supply in coming years meets the requirements of a growing and ageing population,” remarked Harley Dale.
“The soon to be released Intergenerational Report provides a golden opportunity to reframe the conversation about the economic challenges Australia faces in the decades ahead,” said Harley Dale.
“Housing supply reforms are an integral component of any successful economic reform agenda and need to be given due emphasis and recognition in the approaching policy discussion.”
“It would be pleasing to see renovations investment recover in coming years and there is a good prospect of this occurring,” Harley Dale said.
“Renovations investment eked out a 0.5 per gain from a ten year low in 2013/14 and is expected to only sneak in further growth of 0.2 per cent in 2014/15. However, renovations investment is forecast to grow at a faster pace of 2.8 per cent in 2015/16 and 3.2 per cent in 2016/17, bringing the total value above the $30 billion mark again for the first time since 2011/12,” concluded Harley Dale.