Home building boost for Queensland
According to the comprehensive new report card from the representative body for the residential building industry, dwelling starts will continue to rise through 2014, following a return to progress in 2013.
The Housing Industry Association last week released its new Queensland Outlook, which says the key figure of dwelling commencements is expected to push close to 37,000 this year -the largest number seen since 2008. This is growth of nearly 14 per cent, marginally higher than 2013's growth rate of 13.4 per cent, according to the HIA Economics Group forecasts.
Positive signals for buyers
Whether you are looking into buying your first home or expanding your current portfolio of real estate, this is good news for buyers.
Warwick Temby, Queensland Executive Director for the HIA has added that dwelling commencement is forecast to keep increasing in 2015, although only by 4.2 per cent. The numbers also predict a slight decrease in 2016, with commencements to reach 38,466.
Temby says that despite recent hardships in the home building sector, "new home building in Queensland can expect to see a reasonably steady recovery over the years to 2017. New home commencements should eventually top 40,000 per year if the current focus on housing policy reform is maintained."
The hardship in question struck Queensland through 2011 and 2012, where housing commencements reached a low of 28,300, after being as high as 43,400 in 2007.
Innovation for renovation
Renovations investment is also set to improve in the coming years, escalating by 5.9 per cent in 2014 and 3.2 per cent in 2015, before boosting by 5.3 per cent in 2016 to the overall value of $7.04 billion. This shows that not only has the home building sector been energised, but home owners themselves are spurring growth.
This is all excellent news for anyone interested in buying a property in Queensland. As the housing market grows, pricing may become more competitive and opportunities for affordable property purchases could swell, opening up new avenues for residential and commercial property investment in boom areas.
This is not just restricted to metropolitan Brisbane either - the Real Estate Institute of Queensland has noted confidence and property value growth in Cairns, Toowoomba and the Fraser, Gold and Sunshine Coast areas.
Understanding the market is crucial, so feel free to contact LJ Hooker today to discuss property investment options available to you, and to find out where growth areas may be.