Australia’s housing supply situation is “unequivocally weak”, it has been claimed. What does this mean for property investors?
Forget the “argy bargy”, says the Housing Industry Association (HIA), new dwelling commencements are now “unequivocally weak”.
The Australian Bureau of Statistics (ABS) has released figures depicting a 12.6% fall in dwelling commencements in the March 2012 quarter. This was 7.7% for detached houses, and 21.1% for 'other dwellings'.
The HIA declared the figure a sign of 'unequivocal weakness' in commencements, after eight consecutive quarters of decline and a number of commencements below GFC lows.
"Recent encouraging moves by some state governments notwithstanding, the continued deterioration in new housing supply is a poor indictment on Australia's policy makers," said HIA chief economist Harley Dale.
Commencements reached an annualised level of over 122,000 according to the HIA.
"Excluding the new home building recession around the GST, this is the lowest level for dwelling commencements since the September quarter of 1996," Dale said.
The housing supply situation isn’t uniform across Australia however. See our ‘more stories’ section below for differing opinions of how property investors will fare at either side of the country.
Increased housing supply in Vic set to ease capital growth rates
Rents and property prices set to rise in Perth
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out