Strengthening construction industry
The latest figures released by the Australian Bureau of Statistics show the strengthening rate of new dwelling commencements seen during the March quarter, highlighting the rising number of developments and increasing popularity of construction home loans across the nation.
Nationwide, dwelling commencements rose 8.7 per cent over the quarter, with a 12.8 per cent surge in detached home figures. Housing Industry Association Chief Economist Harley Dale said that all states and territories except South Australia underwent growth, illustrating the wide-spread reach of construction growth.
"The annual level of new dwelling commencements is at its highest since late 2010 and at 176,891 is approaching historical peaks, with further upward momentum to come. At a time when the economy is generally regarded to be under-performing, new home building is achieving the opposite outcome," said Mr Dale in a July 16 statement.
"The challenge is to harness this momentum and use it as the platform for enacting real housing policy reform. We need to lock in a structural increase in the number of homes we build in the years ahead if we are to successfully house our growing and ageing population."
According to the data, the Australian Capital Territory saw the strongest degrees of growth - increasing by 31.6 per cent over the three-month period. Following this, Victoria (15.4 per cent), Western Australia (12.1 per cent), the Northern Territory (5.9 per cent), Tasmania (5.3 per cent), New South Wales (2.5 per cent) and Queensland (1.3 per cent) all saw varying levels of growth in their construction sectors.
With the population expected to continue growing and demand for housing tied directly to this, now could be a great time to consider taking out a construction loan and begin investigating the opportunities for building investment properties across Australia in the near future.
Image credit: Anders Adermark