Housing starts increase for Queensland
Regardless of whether you're a first home buyer or an experienced individual with a residential investment portfolio, the latest report from the Housing Industry Association (HIA) could be a great sign that now is the perfect time to enter into the Queensland real estate market. The latest Outlook Report has illustrated the recovering market could be ripe for investment following years of downturn.
The recovery began during 2013, with a number of economic occupancies and governmental interceptions helping to provide the stimulation needed for growth. One of the most important things undertaken last year that has helped the Australian market as a whole was the reduction of the official cash rate, which resulted in reduced interest rates for credit products like home loans.
With confidence in their financial situation growing, people began purchasing property again. These conditions are expected to last well into this year, with many industry observers indicating the cash rate could remain low for the majority of the next 12 months.
HIA's Queensland Executive Director Warwick Temby said new dwelling commencements rose 8.7 per cent last year and heralds the beginning of a long-coming recovery. This follows two years of extremely low activity during 2011 and 2012.
"This upswing in activity will mean good news, not just for the industry but for the Queensland economy as a whole. With mining investment-related activity in decline, residential construction is stepping up to the plate in terms of providing another driver of growth in the state economy," said Mr Temby in a February 28 statement.
With this added incentive, there is even more reason for the governments - both state and federal - to place an emphasis on helping stimulate the housing industry. Residential property and commercial real estate development could pave the way for future investment in Australia, helping to provide wealth in the space left by falling investment in the mining industry.
"The potential for the housing industry to act as a significant engine of economy growth in Queensland should not be underestimated by policymakers," said Mr Temby.
"It is important that policies around planning and land supply become more conducive to greater housing activity in the state."
In Queensland alone, housing starts rose by 3.8 per cent during 2012/13. Predictions for dwelling commencement figures during 2013/14 are expected to be 14.8 per cent, with a further 8.7 per cent expected during 2014/15.
Now could be the perfect time to consider looking into buying land for property investment and securing a slice of the property pie in Australia's Sunshine State.