Recovery from two year dwelling commencement decline good for buyers
After two consecutive years of decreases, the Australian property market has finally experienced an increase in housing commencements, as detailed by new data from the Australian Bureau of Statistics (ABS).
Following falls of 5.8 per cent and 11.1 per cent during 2010/11 and 2011/12, respectively, the commencement of residential properties across the nation experienced an upturn of 11.2 per cent during the 2012/13 period.
Regardless of whether you're a first time buyer, an owner-occupier investigating a property upgrade, or an investor looking into property investment, these stats could offer you an opportunity to secure the property of your dreams.
These sentiments are shared by Dr Harley Dale, the chief economist for the Housing Industry Association (HIA), who said the "encouraging recovery" could be the beginning of a returning strength.
"A substantial upward revision to the March 2013 quarter contributed to housing starts surpassing the 160,000 mark in 2012/13, reaching a level of 161,043," said Mr Dale in an October 11 statement.
"That is a healthy figure by recent standards and certainly a promising first round recovery for new home building."
The June quarter saw large growth across most of the nation's states, with the Australian Capital Territory surging in growth - increasing by a whopping 107.6 per cent.
Furthermore, Tasmania (15.6 per cent), Western Australia (11.3 per cent), Queensland (8.0 per cent) and South Australia (6.0 per cent) all experienced an increase in commencements for residential property during the quarter.
Dr Dale went on to mention that this growth needs to be sustained heading into the future, with more upward momentum emerging in states like New South Wales and Western Australia expected to help spur this on.
"We now need to see an acceleration of growth in 2013/14 reflective of a broad-based recovery in housing starts," said Dr Dale.
"A sustained improvement in confidence, together with low interest rates, would assist the prospect of the recovery gathering legs."
However, Dr Dale also mentioned that the "current regulatory and taxation environment" was not necessarily conducive to a speedy recovery, while tighter credit conditions surrounding the development and growth of the residential property market across the country could provide barriers towards sustained growth.
Understanding the options available to you will aid your decision making process, so get in contact with a real estate agent and begin to research the market trends in your desired market today.