Sustainable upswing anticipated in building sector
Master Builders Australia (MBA) has called for a confidence boost for home buyers and investors.
Following the release of the Federal Budget, there has been plenty of discussion about the way forward for the property industry.
According to the Housing Industry Association, more than $13 billion worth of residential building work during 2014's first quarter spells good news for Australia's economic growth.
However, MBA Chief Economist Peter Jones has noted that a clear "post-Budget growth strategy" is necessary.
Despite the strong figures when it comes to residential building work, Mr Jones was concerned about a drop in dwelling approvals.
"The 5.6 per cent drop in total dwellings approved, seasonally adjusted in April, is largely due to a 14 per cent decline in approvals for other dwellings (including apartments) which followed previous strong growth in units and apartments over the past 12 months," Mr Jones announced.
However, the drop in approvals during April for detached homes (-0.3 per cent) was considered small. Furthermore, the number of detached home approvals during April was still an impressive 16.5 per cent higher than 12 months prior, showing a degree of strength in the sector.
"Whilst the latest building approvals data does not foreshadow the end of the upturn in residential building, confidence is crucial and Master Builders calls on the government to continue implementation of measures to grow the economy to ensure that the budget's structural repair initiatives do not unduly dampen sentiment," Mr Jones urged.
Though approval figures have cooled slightly, builders are confident that sharp rises in months gone by will lead to a "more sustainable upswing", according to Mr Jones.
With very competitive home mortgage rates available, obtaining a property could certainly be on the cards.
Image credit: University of Salford Press Office