Western Australia is projected to record a substantial boost in homebuilding activity next year, driven by the support measures to boost housing, according to the latest market forecast by the Housing Industry Association (HIA).
The positive outlook on the state's homebuilding is due to the expected impacts of the Building Bonus and HomeBuilder schemes. Based on HIA's projections, the state is slated to record 18,209 dwelling starts for the financial year 2020-2021.
During the financial year 2019-2020, dwelling starts fell to a historic low of 13,454, reflecting the bottom of the cycle. Cath Hart, executive director for WA at HIA, said this drop indicates the initial impact of the downturn due to the COVID-19 shutdown.
"It’s great to see WA’s new home building market recovering given the challenges of 2020. This latest data shows that with the combination of both the federal HomeBuilder scheme and WA’s Building Bonus, the state is on track for a sustained rise in activity in 2021 and beyond," she said.
Hart said the extension of the commencement timeframes of the Building Bonus and HomeBuilder schemes provided a boost in forecast, as builders and tradespeople have a more even and sustainable workflow.
"The subsequent impact of the stimulus measures as part of WA’s economic recovery has been exceptional, and we next expect WA’s share of national dwellings starts will jump from around 8% to 12% in the coming year," Hart said.
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