Which construction markets are most active?
New housing stock is something that is simply essential in Australia. It’s what keeps markets flowing, jobs available and the economy afloat. However, not every state or city can be the best, so while record housing approvals have been recorded in the year to April, according to the Housing Industry Association (HIA), some regions have done better than others. It’s also important to note that April actually saw a decrease in the number of dwellings approved, indicating that the strength in the twelve month period may lie in the past.
CoreLogic RP Data notes that the increase in dwelling approvals lines up with lower interest rates and high investor demand. With the effects of the previous two rate cuts still making themselves felt in the market, there could be more scope for record building approvals in the near future. With most investors preferring units to freestanding houses for sale, it’s no wonder that most of the capital cities have seen a greater proportion of apartments and other attached dwellings recently.
In a list of the top 20 regions for housing approvals for the financial year to April 2015 by CoreLogic RP Data, it’s also easy to see the clear bias towards investing in the capital cities. However, popular locations such as Geelong and the Gold and Sunshine Coasts also did very well. In terms of state representation, Victoria did the best with six regions on the list, including the south-east, west and north-west parts of Melbourne.
Queensland and Western Australia were equally represented in the top 20 list for houses, with five regions each, while New South Wales had three and South Australia had one – Adelaide-North. When it comes to the top 20 for units, it’s a different story, with New South Wales leading the pack with six regions. The ACT is also on this list, with 2,296 approvals, ahead of the Gold Coast.
CoreLogic RP Data senior analyst Cameron Kusher notes that with a strong pipeline of activity in the high-density sector, the multiplier effect of heightened construction levels should be felt for years to come. This is great news for anyone interested in the property market or working in construction, as well as the broader economy.
If you’re interested in real estate in Sydney or anywhere else in Australia, there’s a Ray White real estate agent nearby who’s ready to help.