Is QLD’s housing market on its way to recovery?
The Australian Bureau of statistics has released new data on housing starts for the June 2013 quarter which shows Queensland’s total dwelling unit commencement is up to 29,343 for the 2012-13 financial year.
This number is up by 19,343, and represents a positive step for a market that’s struggled in recent years.
“The June figure of 8,023 is very positive news, with a whopping 26% improvement on the March quarter’s 6,341 commencements,” said Master Builders Deputy Executive Director Paul Bidwell.
Building approvals for July and August were up 14.6% compared to 2012; further signs the market in Queensland is on its way to recovery. But there is still some way to go yet.
Bidwell is optimistic overall, citing low interest rates and steady population growth as indicators of an improving housing market:
“We are still some way off clawing back to the level of 40,000 housing starts, which is where we need to be to accommodate the growth in Queensland’s population. The last time we achieved that level was back in 2007–08, but new figures show recovery is underway,” he said.
Results from Master Builders September quarter Survey of Industry Conditions indicate that over 60% of builders see the outcome of the recent Federal Election as a positive influence on building activity.
“We believe that so long as employment levels hold steady, we’re confident that the Queensland housing sector will commence construction of 32,000 dwellings in 2013–14.”