HAVE WE PEAKED?

Written on the 12 August 2015 by Laura Daquino

HAVE WE PEAKED? FRESH reports from the Housing Industry Association (HIA) could suggest a turning point in a peaking housing market.

Following its quarterly state-by-state reports released this week, the HIA has posed a key question whether the most recent decline in approvals is the beginning of a broader trend, or it's just an aberration to continuing growth.

Total new home building approvals across the nation have trended down 4.8 per cent in the June quarter this year compared to the year prior.

This comes after news Australians started on building more new homes in the year to March 2015 than in any other twelve month period on record. The total figure was 204,096 from a population of 23 million people.

In fact, the three months to March 2015 reflected particularly high times - 'easily' a record quarterly level of 57,000 dwellings were approved.

New dwelling commencements are now expected to decline sharply, 11.5 per cent in 2016 and 5.8 per cent in 2016/17.

"The current housing cycle is characterised by markedly different conditions across state and territory borders," reports the HIA.

"The near-recessionary conditions afflicting the home building markets in Tasmania and South Australia provide an obvious contrast to the buoyant conditions in NSW and Victoria.

"Meanwhile, the investment cycle of the resource sector is playing a pivotal role in conditions in Western Australia, Queensland and the Northern Territory.

"Finally, the housing market in the ACT has been affected by the dynamics of federal politics over the last five years."

The HIA admits that it speculated approvals had peaked this time last year, however, at that time it noted the possible occurrence of a second wind due to factors such as record-low interest rates.

This wind did sweep the industry - and now, it's not so likely interest rates can keep dramatically falling.

The HIA is standing by its previous estimate that the cash rate will remain at 2 per cent before starting to increase during the second half of 2016.



Author: Laura Daquino Connect via: Twitter LinkedIn

Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter