 Forecast for new homes promising
Residentail building in Australia is set for a remarkable recovery, driven mainly by recent government grants and low interest rates.
The Housing Industry Association says over the next two years, building of new homes will improve by up to 20 per cent.
"The reasons for the recovery are well known - low interest rates, first home incentives, and a massive boost for social housing. And with consumers feeling more confident about job security and the general economy, new home building and renovation activity will benefit," noted Dr Harley Dale, HIA chief economist.
Mr Dale is seeing an increase in the market of more trade-up buyers. He also says that low interest rates are having some positive impact on Australia's housing recovery, these low levels are historically low.
According to Dr Dale, the rise in home building will be followed by a large increase in infrastructure construction.
Interest rates are set to start rising this year and into next year, however, with rates low at the moment and many taking advantage of grants such as green loans and first home buyer grants, building a new home has become an attractive option for many.
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