Strong GDP growth for Australia in Q1

Strong GDP growth for Australia in Q1

The Housing Industry Association (HIA) has reaffirmed the role of a strong housing industry in relation to the country's economy in a June 4 statement.

Thanks to Australian lenders' low mortgage rates, spurred on by a historically low cash rate, buyers and investors are in a great position to realise their property goals.

However, ensuring that construction keeps pace with demand is essential - particularly in areas tipped for growth.

Housing industry a bright light

"In the context of what is often an emphasis on negative economic news in Australia, today's gross domestic product (GDP) result is a stellar update for the Australian economy," said Dr Harley Dale, chief economist for the HIA.

Dr Dale was referring to the latest Australian National Accounts, released by the Australian Bureau of Statistics (ABS) on June 4.

It highlights that GDP grew by 0.8 per cent quarter-on-quarter to March in trend terms and by 1.1 per cent in seasonally adjusted terms.

"Dwelling investment, an important leading indicator of wider domestic economic activity, has firmly taken its place on the positive side of Australia's growth ledger," Dr Dale said.

The HIA chief economist outlined the importance of continued "healthy contributions" from Australia's residential building sector. This will ensure strong economic growth throughout the year and into 2015.

"In seasonally adjusted terms the chain volume measure of GDP grew by 1.1 per cent in the March 2014 quarter, delivering a heartening annual growth rate of 3.5 per cent. Barring the growth peak a couple of years ago attributable to the second round of the resources boom, that is the fastest annual growth rate since 2007," Dr Dale said.

With plenty of promise, now could be the time to utilise the cheap home loan climate and secure property.

Image credit: rore_d

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