The construction of new residential dwellings is set to spike over the next three years, after a strong pick-up in 2013-14.
The value of residential building work done is forecasted to grow from $51 billion in 2013-
14 to $68 billion in 2016-17, according to forecasting done by Master Builders Australia.This will see the number of dwelling starts to exceed 200,000 during this timeframe.
There will be good growth in both detached houses and apartments, however the period will see the construction of detached housing making a strong comeback, said Master Builders spokesman Ben Carter.
“The strong growth in units and apartments in the last 12 months has driven the recovery and growth in this period of the residential building cycle, and that is likely to keep growing strongly,” he said.
“Up until June 2013, there were about 70,000 apartments that had been built, and that will be just over 80,000 by the end of this year. It will continue to grow strongly in the next two years, but may tail off a little bit in 2017.”
"However, the construction of detached houses which has been lagging a little bit is now playing a very strong game of catch up. In June 2013, there were about 93,000 houses that had been built but by June 2017, there is going to be about 122,000.”
This growth cycle can be attributed to interest rates remaining at low levels, which has allowed for unmet pent up demand to be addressed – built up from the previous decade where supply failed to match strong population growth.
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 with your investment property
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 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 and appointment is free.
We value your privacy and treat all your information seriously - you can check out