Research by the Housing Industry Association (HIA) reveals 2015 will see significant growth in the new home building sector, particularly in the early months.
The HIA’s New Home Sales Report, focussing on Australia’s largest volume builders, showed increases in both new home sales and residential building approvals - the key indicators of new housing construction activity during last year’s December quarter.
“This is a clear indication that actual residential construction activity will rise in the current early months of 2015, which is good news for the broader domestic economy in addition to the housing sector," says HIA Economist Diwa Hopkins.
Hopkins said that monthly sales volumes were consistently strong in 2014, “following the recovery that characterised 2013,” with the total number of sales for the year 14.4% higher than in 2013.
“A key change in conditions to the residential construction sector in 2015 is the February cut to the official cash rate to a new historic low,” Hopkins said.
“However, it should be noted that this cut was made in the context of a mooted tightening of lending conditions in parts of the housing market.”
In its pre-budget submission, the Real Estate Institute of Australia (REIA) has urged the Government to retain negative gearing to encourage property investment and place downward pressure on rents.
REIA chief executive Amanda Lynch says Negativethe evidence is clear that both negative gearing and the capital gains tax discount is crucial to feed the supply-side pipeline at a time of a chronic under-supply of houses in Australia.
“Any alteration to the current arrangements would likely result in a need for a greater investment by the Government in social housing and could potentially increase rents - as recognised by the Henry Tax Review in 2010, which stated that the current provisions placed downward pressure on rents,” she said.
The REIA’s Pre-Budget Submission highlights eight recommendations aimed at contributing to Australia’s continuing economic development and productivity while attracting first home buyers back into the property market and improving housing affordability.
QIC announced today the commencement of Grand Central's much anticipated $500 million redevelopment, which will transform the city centre into a retail, entertainment and lifestyle destination.
QIC Global Real Estate managing director Steven Leigh and Queensland Treasurer Tim Nicholls marked the start of construction at today's official sod turning event.
Completion of the Grand Central development is anticipated by early 2017.
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